Holliday Fenoglio Fowler (HFF) has completed the sale of the Sheraton North Dallas, a 309-room hotel in “Big D”. HEI Hospitality LLC acquired the hotel for an undisclosed amount from a lender that had foreclosed on the property.
HFF marketed the real estate owned (REO) property exclusively on behalf of the seller in a deal announced May 18. This is the second purchase in the submarket for Norwalk, Conn.-based HEI, which last year bought the Le Méridien, also marketed by HFF.
The property is HEI’s second hotel acquisition of 2011, its sixth hotel under Starwood’s Sheraton brand and HEI’s 34th owned hotel.
The Sheraton North Dallas is located at 4801 LBJ Freeway, across from the Dallas Galleria at the intersection of the LBJ Freeway and the Dallas North Tollway in northwest Dallas.
Originally built in 1979, the property was renovated in 2009 and features 14,000 sq. ft. of updated meeting space, a full-service restaurant, 24-hour fitness center, indoor/outdoor swimming pools, a club lounge, dry cleaning service and shuttle service within the surrounding area.
“This is a core HEI asset in a prime location in the foremost business center of Dallas,” says Steve Mendell, HEI’s president of acquisitions and development. “And once renovations are completed, [the hotel] will align perfectly with our portfolio of upper-upscale properties in leading U.S. markets.”
This is the sixth acquisition of HEI Hospitality Fund III. “We continue to seek out assets that leverage the experience of our multi-disciplinary owner/operator platform,” says Mendell.
Leading the HFF team in the sale were senior managing director Dan Peek and director John Bourret. HFF, which operates 19 offices nationwide, provides brokerage and capital markets services to the U.S. commercial real estate industry.