Greenwich, CT — September 27, 2021 — Knighthead Funding LLC (“Knighthead”) has provided Napali Capital (the “Sponsor”) with a $19 million first mortgage loan for the acquisition of a 152-room full service hotel in Dallas, TX.
The financing is secured by the Tru Hotel by Hilton, a full-service, 152-key property located at 1949 N. Stemmons Freeway in Dallas’ Design District. The property’s location makes it a desirable destination for both corporate and leisure travelers. It sits in close proximity to the Dallas Market Center, one of the world’s largest wholesale merchandise marts, as well as Trinity Groves, a 15-acre restaurant, retail, artist and entertainment destination complex. Proceeds from Knighthead’s loan will be used to acquire the property, complete upgrades to the property and provide working capital for the continued stabilization of the asset.
The building served as a bank for more than 20 years before being converted into a hotel in December 2020. Since opening, the hotel has experienced occupancy rates near 80 percent.
Napali Capital, whose management team has a successful history in the hospitality industry, acquired the property in July 2021 and engaged Aimbridge Hospitality, one of the leading hotel management groups, to manage the asset. The Sponsor’s business plan is to improve the current operations and strategically increase cash flow by upgrading food and beverage service, including the marketing of the hotel’s rooftop bar as a meeting spot.
“We were impressed with the Sponsor’s business plan and their proven track record in the hospitality industry,” Knighthead Vice President, Henry Boeckmann, said. “The property’s strong brand, recent renovation and highly desirable location, in one of the country’s top travel destinations, will positively contribute to its overall success.”
“We continue to believe strongly in the underlying fundamentals of the DFW metroplex” said Jonathan Daniel, Principal of Knighthead Funding, “with exceptional sponsorship and management, we believe this will be a very successful project.”
