Capital Square has acquired the 99-year ground lease beneath the newly renovated luxury hotel Le Méridien in downtown Fort Worth.
The unsubordinated lease, which has 95 years left, was purchased on behalf of CS1031 Zero Coupon DFW Hospitality, DST, a Delaware statutory trust investment offering. The deal is designed for accredited investors with high debt replacement needs under Section 1031 exchanges.
The hotel operates under the Marriott International brand.
“Section 1031 requires exchangers with debt on their relinquished property to have equal (or greater) debt on their replacement property. This DST offering is structured with high leverage for exchangers who need a solution when their relinquished property has a high level of debt,” said Louis Rogers, Capital Square co-CEO, in a statement.
The 14-story, 188-room hotel at 815 Commerce Street reopened in 2024 after a complete renovation. It features a restaurant, rooftop bar, convention space, ballroom, pool, fitness center, and valet services.
“Fort Worth is one of the fastest-growing metropolitan areas in the nation,” said Whitson Huffman, Capital Square co-CEO and CIO. “This acquisition delivers a unique opportunity for investors.”