DBS Trustee, the trustee of Eagle Hospitality REIT (EH-REIT) has announced that it has entered into a purchase and sale agreement and joint escrow instructions to sell the Crowne Plaza Dallas Near Galleria-Addison to Lockwood Development Partners for a consideration of US$15.5 million ($21.1 million).
See: REIT Trustee says recovery of monies unlikely for Eagle Hospitality Trust’s minority investors
Of the consideration, an initial deposit of US$0.1 million will be placed in the escrow account by July 23. An additional deposit of US$0.9 million will be placed in the same account by July 27.
The balance of US$14.5 million will be placed in the same account one business day before the closing date of Aug 27.
The agreement was signed by EH-REIT’s wholly-owned indirect subsidiary, 14315 Midway Road Addison LLC.
The Crowne Plaza Dallas Near Galleria-Addison is one of the three remaining hotels in Eagle Hospitality Trust’s (EHT) portfolio.
Both parties had previously signed a purchase and sale agreement on April 12. The agreement was eventually terminated on May 7.
The Crowne Plaza Dallas is a 428-room hotel spanning four storeys and sits on freehold land.
The property is located near Downtown Dallas and Dallas Fort-Worth International Airport.
The property currently has a mortgage loan that is held by the holders of Benchmark 2018-B4 Mortgage Trust Commercial Mortgage Pass-Through Certificates, Series 2018-B4 (also known as the lenders).
The lenders had issued a notice of acceleration on Aug 10, 2020, in relation to the loan, where the property has failed to pay the amounts due under the loan.
To date, the amount owed under the loan stands at some US$12.9 million.
The Crowne Plaza Dallas is one of the three properties in EHT’s portfolio that is not directly owned by a Chapter 11 entity. The other two being Delta Woodbridge and Hilton Houston.
The current offer has been the most attractive one for Crowne Dallas, says DBS Trustee. The bid represents the “most attractive combination of price and timing” for any proposed sale for the property, says the trustee.