TROY, MI—Axilla Capital LLC closed a $27.6-million loan for its client’s acquisition of the Crowne Plaza hotel located near the Dallas Galleria in Addison, TX. The loan proceeds were used to purchase the property and fund a capital improvement reserve. Managing Principal Joel Mazur and Associate Tom Fleming represented the borrower on the transaction.
“Because the hotel’s property improvement plan was scheduled over a couple of years, rather than immediately, we negotiated a structure that minimized the upfront reserves. Rather than escrow the entire amount needed to complete the PIP at the time of closing, we arranged a facility that reserved for some of the capital upfront and the rest via cash flow,” said Mazur. “While a balance sheet or bridge lender can sometimes offer this type of product, the fact that this was a fixed-rate CMBS loan made it unique.”
Built in 1984, the 428-room, full-service property was modernized in 2013 and awarded IHG’s “Renovation of the Year” Award in 2014. The hotel features two food and beverage outlets, an outdoor swimming pool and hot tub, two fitness facilities, a business center and covered parking. Additionally, the property has approximately 32,000 sq. ft. of meeting space, including a large ballroom and the area’s only lecture hall.
Located near the Galleria Shopping Center, the Crowne Plaza Dallas Near Galleria – Addison is 12 miles north of downtown Dallas and 17 miles northeast of Dallas/Fort Worth International Airport, the world’s sixth busiest airport. The hotel’s location near I-635 and Dallas North Tollway allows guests access throughout the Metroplex including Fort Worth, Las Colinas and Plano.