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SAN FRANCISCO-The leaseholder for Pier 39 has refinanced the property to the tune of $153 million. Pier 39 LP, controlled by Moor + South of Lake Forest, IL, uses the bulk of the funds to pay off the previous $117-million securitized loan and an $11.5-million equity investment made last year by CDC Capital Mortgage. Both the original loan and the equity investment had pre-payment penalties. The remaining funds will be reinvested in the property in the form of ongoing maintenance.Located two blocks east of Fisherman's Wharf at the northern tip of the San Francisco Peninsula, Pier 39 features 110 specialty shops, restaurants and entertainment venues within its 242,266 sf of leaseable area and a 980-car parking structure. Tenants at Pier 39 include Hard Rock Cafe and Bubba Gump Shrimp Co. restaurants; Aquarium of the Bay, a 707,000-gallon aquarium and marine attraction; and the Blue & Gold Fleet, the exclusive provider of transportation to and from Alcatraz Island. The refinancing was provided by a Wall Street investment bank and sourced by Sonnenblick-Eichner Co. The new mortgage provides for a 10-year term including a period of interest-only payments and then debt service based on a 30-year amortization schedule thereafter. The loan carries an interest rate of approximately 5.25%. Sonnenblick-Eichner principal David Sonnenblick attributes the "tremendous amount of institutional interest in this financing" to the enormous amount of capital available today and the unique quality of this asset. "We received multiple offers ranging from terms of 10 to 20 years," says Sonnenblick. "Despite the significant defeasance premium, the net proceeds from this refinancing, combined with the savings in interest expense, more than offset their prepayment costs".