$45M Financing Earmarked for Iconic SF Hotel
- Apr 11, 2018
George Smith Partners has secured $45 million in bridge refinancing on behalf of The Kor Group for the San Francisco Proper Hotel, a 131-key hotel in San Francisco’s Mid-Market neighborhood. The new mortgage replaces an existing construction loan and mezzanine facility.
Located at 1100 Market St., the historic flatiron building sits at the triangle of McAllister, Market and Seventh Street. The Proper Hotel is situated in the heart of the city, close to major landmarks and cultural institutions.
Designed by Kelly Wearstler, the hotel rooms feature interiors inspired by San Francisco’s pre-modernist European influence. The property boasts award-winning food and beverage concepts: Villon, an all-day dining destination, and Charmaine’s, a rooftop bar that provides 360-degree views of the city.
“This was a unique opportunity to finance a highly-anticipated luxury lifestyle hotel that underwent a significant repositioning while maintaining its historic character,” Malcolm Davies, George Smith Partners’ principal and managing director, said in a prepared statement. Joining Davies on the financing team were Evan Kinne, Zack Streit, Rachael Lewis, Alexander Rossinsky and Minjoo Kim.
“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,” Davies added.
George Smith Partners has arranged more than $44 billion in financing since its inception. In late 2017, the company secured an $85 million bridge loan for the San Diego Pendry Hotel.
In September 2017, The Kor Group, in partnership with the Merchant Banking Division of Goldman Sachs & Co., acquired Custom Hotel in Los Angeles.
Image courtesy of George Smith Partners