$50M Waterfront Boutique Hotel Project Under Way

SAN FRANCISCO-Work has begun for an eight-story, 200-room luxury boutique hotel on the waterfront, across from the recently restored Ferry Building. The co-developers are Joie de Vivre Hospitality and Emerald Fund, Inc. Webcor Construction, Inc. is the general contractor, and Heller-Manus Architects is the architect. A grand opening is scheduled for March 2005.

The $50-million Hotel Vitale is being funded with a $25-million senior loan from Union Labor Life Insurance Co. and an $8-million mezzanine loan from Hall Financial. The borrowers are providing the remainder. The senior debt is a two-year construction loan with a three-year mini-perm and an interest rate in the 6% range. The mezzanine loan has a five-year term and an interest rate in the high teens.