WEST PALM BEACH, Fla., Jan. 09, 2024 (GLOBE NEWSWIRE) — Southern Realty Trust Inc. (“SRT” or the “Company”) today announced that it originated a $56.4 million mezzanine loan for The Allen (the “Project”), a 35-story mixed-use project situated on Allen Parkway and the Buffalo Bayou Park in Houston, Texas. The Project is located in Houston’s Inner Loop between Downtown and River Oaks.
The Sponsor is DC Partners, a Houston-based development firm that specializes in luxury high-rise residential, mixed-use and hospitality projects. The transaction marks SRT’s initial commercial real estate (“CRE”) investment, which is followed by an active and robust pipeline of transactions that SRT is pursuing, including note purchases, new origination first mortgages and mezzanine loans. The Company expects to close additional CRE transactions in the first quarter of 2024.
The Project is comprised of luxury residential condominiums, a Thompson-flagged hotel (Hyatt), and various restaurants and retail stores. Residents of the condominiums will have full access to the amenities of the Thompson hotel, which will feature modern design, skyline views and event spaces. The adjacent retail pavilion is fully leased to two restaurants and a fitness facility. The Project is slated for completion in early 2024.
“We are excited to support DC Partners and their business plan for the Allen, which we believe is a market-leading asset accentuated by its unparalleled location. We believe that this transaction showcases SRT’s ability to partner with borrowers who seek flexible financing solutions and certainty of closing,” said Brian Sedrish, Chief Executive Officer of Southern Realty Trust.
SRT was formed in 2023 to originate CRE debt investments in the Southern U.S. and provide capital to high-quality borrowers and sponsors with transitional business plans collateralized by top-tier CRE assets with opportunities for near-term value creation, as well as recapitalization opportunities. SRT intends to create a diversified investment portfolio, targeting first mortgages, B-notes, mezzanine loans and debt-like preferred securities across CRE asset classes. For additional information regarding the Company, please visit: www.theSRTgroup.com.
Certain statements contained in this press release, including those that express a belief, expectation or intention, as well as those that are not statements of historical fact, are forward-looking statements. The Company’s forward-looking statements are generally accompanied by words such as “intend,” “slated,” “will,” “estimate,” “project,” “predict,” “believe,” “expect,” “anticipate,” “potential,” “plan,” “goal” or other words that convey the uncertainty of future events or outcomes. Statements, among others, relating to the anticipated completion of the Project are forward-looking statements. Forward-looking statements contained in this press release speak only as of the date of this press release. The Company disclaims any obligation to update these statements unless required by law, and the Company cautions you not to rely on them unduly. The Company has based these forward-looking statements on its current expectations and assumptions about future events, which the Company considers reasonable. However, these forward-looking statements are inherently subject to significant business, economic, competitive, regulatory and other risks, contingencies and uncertainties, most of which are difficult to predict and beyond the Company’s control. Actual results and performance in the future could differ materially from those set forth in or implied by such forward-looking statements.
Investor Relations Contact:
Robyn Tannenbaum & Lana Ping