(Save the date: RealShare Apartments comes to the Westin Bonaventure, Los Angeles, October 24.)
SAN FRANCISCO-An unidentified borrower has received a $36-million loan to refinance the Galleria Park Hotel, a 109,673-square-foot, full-service hotel located between the Financial District and Moscone Convention Center here. The loan was provided by the Orange County office of Berkadia Commercial Mortgage LLC through lender Morgan Stanley. Berkadia VP Jackson Cloak worked with the borrowers to originate the 10-year, fixed-rate loan for the leased fee interest and leasehold interest on the property. The loan was used to refinance a one-year, $24 million bridge loan that Berkadia had provided in October 2011 for the acquisition of the leased fee. Other features of the loan include a 67% LTV and 30-year amortization.
“The deal was successful because we were able to help the borrower with a bridge loan and permanent refinancing,” said Cloak in a prepared statement. “While each loan had its own intricacies, with Berkadia acting as the loan servicer we were able to work closely with Morgan Stanley as lender and lay out different options that met the borrower’s specific needs for each loan and scenario.”
While Cloak was unable to reveal any further details about the borrower, he did tell GlobeSt.com that the owner has owned the hotel since 2006 and the land was acquired using Berkadia’s bridge loan in 2011. He adds that there will be no major upgrades to the hotel, which was built in 1911, since it was renovated in 2007.
As GlobeSt.com previously reported, earlier this month Berkadia Commercial sold the 352-room St. Anthony Hotel in San Antonio to BC Lynd Hospitality LLC following a competitive bidding process. The new owner, a joint venture between BC Commercial Partners and Lynd Co., will invest $24 million into the historic hotel, which will eventually operate under the Starwood Hotels & Resorts flag. Also, Berkadia was one of 20 lenders selected to participate in a pilot program the US Department of Housing and Urban Development launched in February—the Multifamily Low Income Housing Tax Credit pilot. Training began earlier this month, after which the lenders are qualified to start processing applications.
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Carrie Rossenfeld
Carrie Rossenfeld is a reporter for the San Diego and Orange County markets on GlobeSt.com and a contributor to Real Estate Forum. She was a trade-magazine and newsletter editor in New York City before moving to Southern California to become a freelance writer and editor for magazines, books and websites. Rossenfeld has written extensively on topics including commercial real estate, running a medical practice, intellectual-property licensing and giftware. She has edited books about profiting from real estate and has ghostwritten a book about starting a home-based business.
