SAN FRANCISCO—Despite the need for tax credits and Chinese investors while overcoming a delay of two years due to a fire during construction, the former Renoir Hotel was successfully transformed into a luxury hospitality project. The historic flatiron building, now a 131-room hotel, The Proper, debuted last June.
The city's first luxury lifestyle hotel in more than a decade was developed by Los Angeles-based The Kor Group, a lifestyle real estate investment firm with more than $3 billion in assets, in collaboration with Proper Hospitality. The crumbling facade was stripped away to reveal its Beaux-Arts beauty and the historic lobby was painstakingly restored by local artisans who employed centuries-old techniques, GlobeSt.com learns.
It is located at the triangle of McAllister, Market and Seventh streets (7th and Market) at 1100 Market St. in Mid-Market, where tech companies now inhabit once-blighted but historic landmarks.
Most recently, George Smith Partners successfully arranged $45 million in bridge refinancing for the hotel. The financing was arranged by George Smith Partners' principal and managing director, Malcolm Davies, along with Evan Kinne, Zack Streit, Rachael Lewis, Alexander Rossinsky and Minjoo Kim.
“This was a unique opportunity to finance a highly anticipated luxury lifestyle hotel that underwent a significant repositioning while maintaining its historic character,” said Davies. “The new loan will replace an existing construction loan and mezzanine facility, providing cost savings, term and flexibility for the sponsor.”
George Smith Partners worked closely with the sponsor to arrange the financing. Davies cited The Kor Group's proven track record of developing and operating hotels as an important factor.
“The capital markets responded well to the opportunity, based on the property's elevated positioning within the San Francisco hospitality market and the strength of the sponsorship group,” said Davies. “Our ability to work hand-in-hand with the Kor team to help deliver what they were looking for is a testament to their long-term vision for the project and the Proper brand itself.”
According to Davies, the new bridge loan enables Kor to focus on its continued operational success and further establishes the property as a premiere luxury lifestyle hotel in San Francisco.
Designed by Kelly Wearstler, the hotel offers interiors inspired by the city's pre-modernist European influence and takes a cue from a range of early Modernist, Cubist and Secessionist eras. The hotel has two food and beverage concepts, including Villon, an all-day dining destination, and Charmaine's, a rooftop bar boasting 360 degree views of the city, GlobeSt.com learns.
A mix of transit is available just outside Proper's front doors. Civic Center, Davies Symphony Hall, War Memorial Opera House, Moscone Convention Center, SoMa, the Theatre District, Hayes Valley and Union Square are about a 10-minute walk from the hotel.
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Lisa Brown
Lisa Brown is an editor for the south and west regions of GlobeSt.com. She has 25-plus years of real estate experience, with a regional PR role at Grubb & Ellis and a national communications position at MMI. Brown also spent 10 years as executive director at NAIOP San Francisco Bay Area chapter, where she led the organization to achieving its first national award honors and recognition on Capitol Hill. She has written extensively on commercial real estate topics and edited numerous pieces on the subject.
