Ray Washburne Adds Design District Hotel to CRE Portfolio

Dallas real estate developer Ray Washburne recently closed on a deal to acquire Tru by Hilton Dallas Market Center, adding to his portfolio of properties in Big D.

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Washburne’s Charter Holdings, in partnership with Pennsylvania-based The Liberty Group, announced the purchase on Monday, according to Dallas Business Journal. The property operated as an office building for years before it was transformed into a 152-room hotel and sold to Napali Capital of Roanoke in 2021.

The property’s latest tax assessment lists its market value at $10.6 million. Stakeholders, however, have reportedly declined to disclose the price of the sale.

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Located at 1949 N Stemmons Fwy on the northern edge of the Design District, Tru by Hilton Dallas Market Center is poised to be on the receiving end of several million dollars in renovations. One touted highlight of the planned facelift is an upgrade to the building’s rooftop bar.

“We’re particularly excited about transforming the rooftop into a destination bar that will offer unparalleled views of the Dallas skyline,” Washburne said in a statement, according to DBJ.

The real estate mogul’s acquisition of the hotel is only his latest move in a portfolio build-up that’s bullish on Dallas, particularly in and around the city center. He recently scooped up the Greyhound bus station downtown, adding it to holdings that include the old 8-acre Dallas Morning News property and the historic Founders Square building. Washburne’s company also owns the upscale Highland Park Village shopping center.

Speaking about Tru by Hilton Dallas Market Center, Washburne called his purchase a “long-term play.”

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“This is not just buy it and flip it in a year,” he said, according to DMN. “I think it shows a commitment in Dallas. […] I think there’s a lot of positive things that are happening.”

Washburne and other developers, such as PegasusAblon’s Mike Ablon, are betting big on the Central Business District, seeking to revitalize its commercial roots and capitalize on the $3 billion redevelopment of the Kay Bailey Hutchison Convention Center.

Anticipating increased travel to the city surrounding area, builders are also throwing up more hotels. The Q3 2024 U.S. Hotel Construction Pipeline Trend Report by Lodging Econometrics had the Dallas metro at the head of the pack for the quarter with 194 projects and 22,803 rooms on the books, Hotel Management reported.

“As Dallas continues to flourish as a major economic and cultural hub, the hotel market is experiencing significant growth,” said Dan Klingerman, president of The Liberty Group, per DBJ. “This trend is fueled by strong demand from both business and leisure travelers, positioning the city for continued success in the hospitality industry.”

The Liberty Group’s subsidiary Liberty Hospitality Partners is set to manage Washburne’s latest acquisition, which will keep its Hilton branding. Construction could begin as soon as next spring, with stakeholders hoping to launch the revamped rooftop bar in the summer, DMN reported.