Kyle Bass, founder and chief investment officer of Hayman Capital Management, has acquired a 50% equity stake in four real estate development and management companies owned by Frank Zaccanelli.
Bass’ company, Mossad Bass LLC, acquired 50% of Fiamma Partners, Fiamma Management, and Fiamma Statler, which have ownership interests in The Statler Hotel in Downtown Dallas.
Bass also acquired 50% of the Zaccanelli-held company FZ WLRW, which owns part of the Entrada development in Westlake and the Riverwalk at Central Park development in Flower Mound.
The deal will enhance the strategy of Zaccanelli’s companies and allow for expansion.
“The opportunity to invest in distressed real estate projects with one of Dallas’ top real estate minds is an opportunity I couldn’t pass up,” said Bass. “Frank and I are dedicated to dismantling the fraud that has plagued these projects in the past in order to have them prosper in the future.”
Zaccanelli led the management team overseeing the funding and design of The Statler Hotel and the projects in Westlake and Flower Mound through early 2016.
Zaccanelli was also responsible for raising $235 million in capital for the projects through the EB-5 immigration investment program, which is sponsored by the federal government to create jobs and economic development in the three cities.
“Kyle Bass is one of the most prominent businessmen and investors in the United States. The opportunity to form a partnership with Kyle is one of the highlights in my more than 40-year career in business,” said Zaccanelli.
Bass, who attended TCU, is the founder and chief investment officer of Hayman Capital Management. He is a member of the Council on Foreign Relations (CFR) and is also a board member of the Texas Department of Public Safety Foundation, and is a former board member of the University of Texas Investment Management Co. (UTIMCO).
Frank Zaccanelli is the founder, CEO, and managing partner of Fiamma Partners. Zaccanelli is the former executive vice-president of Hilllwood Development Company, and the former president of Hillwood Investment Company, both Ross Perot, Jr-owned companies.
Zaccanelli was also the President, General Manager and Minority Owner of the Dallas Mavericks of the NBA.