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1/12/18
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CDC San Francisco has obtained $110 mil in first mortgage financing on the InterContinental San Francisco, a 32-story, 550-room hotel located adjacent to San Francisco’s Moscone Convention Center, in the city’s South of Market district (SOMA) downtown. The financing was arranged by Sonnenblick-Eichner Company.
The Four-Diamond, AAA-rated hotel includes 43k sf of meeting, banquet and pre-function space; Luce, a Michelin rated restaurant; a 10k sf spa and subterranean parking accommodating 180 valet spaces.
The interest rate for this 10-year, non-recourse, fixed rate loan is in the low 4% range, and was priced at less than 200 basis points over the swap rate. The new loan replaced an existing floating rate LIBOR-based loan. It has an 80 basis point increase in LIBOR over the last 12-month period in 2017. It was funded by a Wall Street investment bank.
“We received interest from both life insurance companies and Wall Street investment banks. Given the interest rate floors instituted by most life insurance companies, a securitized loan provided the best execution for the borrower,” said Sonnenblick-Eichner Company Principal David Sonnenblick.
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