Company: NXDT
Filing Date: 2025-01-21
Form Type: 424B3
Source: 0001437749-25-001494
Chunk: 204

Company: NEXPOINT DIVERSIFIED REAL ESTATE TRUST
Filing Date: 2025-01-21
Form: 424B3
Chunk 204
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     |                    |   2,750 |   |     |          | 11.48 | % |     | 3/7/2025 |
| Mezzanine Note 2              |     |                    |     393 |   |     |          | 11.48 | % |     | 3/7/2025 |
| Mortgages payable             |     |                    | 140,531 |   |     |          |       |   |     |          |
| Deferred financing costs, net |     |                    |    (152 | ) |     |          |       |   |     |          |
| Mortgages payable, net        |     | $                  | 140,379 |   |     |          |       |   |     |          |

The weighted average interest rate of NXDT’s debt related to its Cityplace investment was 8.28% as of September 30, 2024 and 8.53% as of December 31, 2023. The one-month SOFR was 5.12% as of September 30, 2024 and 5.35% as of December 31, 2023.

The Loan Agreement contains customary events of default, including defaults in the payment of principal or interest, defaults in compliance with the covenants contained in the documents evidencing the loan, defaults in payments under any other security instrument covering any part of the property, whether junior or senior to the loan, and bankruptcy or other insolvency events. As of September 30, 2024, NXDT believes it is in compliance with all such covenants.

Cityplace Tower is subject to an ongoing renovation which will convert a portion of the property into a hotel. We estimate an additional $190 million to $210 million of capital expenditures to complete the Cityplace renovation.

Other Properties

The Portfolio includes three additional operating properties in the NXDT segment, each located in Texas. Two of these operating properties are retail properties that were acquired in 2013. These properties include approximately 1.1 million rentable square feet. NXDT also owns a property consisting of 21.5 acres of undeveloped land in Plano, Texas.

In the opinion of NXDT’s management, each of its operating properties is adequately covered by insurance.

Dallas Hilton Garden Inn

The Dallas Hilton Garden Inn is an upscale select-service hotel that was originally constructed in 1995, centrally located and proximate to many of the region’s major demand