Peak Finance Secures $70M in Financing for San Diego Hotel
- Apr 14, 2017
San Diego Carte Hotel LP and Pierpoint Management have received financing to develop The Carte Hotel & Suites by the Curio Collection by Hilton, a new hotel in San Diego’s vibrant Little Italy neighborhood.
“Carte is an upscale, unique boutique hotel within one of the most vibrant, cultured and desired downtown communities, Little Italy,” Ried Floco, Carte Hotels’ CEO, told Commercial Property Executive. “Carte focuses on local and regional experiences for clients coming to San Diego who want an experience, not just a hotel.”
Peak Finance structured and secured the $70 million financing package through a combination of senior construction financing and a preferred equity investment in obtaining proceeds of $49.8 million for the construction phase of the project.
“The Little Italy neighborhood in San Diego is an iconic and vibrant part of the Downtown area,” Gil Priel, Peak Finance’s managing partner, told CPE. “This financing opportunity stood out to us because of the location and the opportunity to work with an iconic brand like Curio by Hilton. We feel strongly that The Carte Hotel will generate an exciting opportunity for both tourists and business travelers in San Diego.”
The boutique hotel will feature 228 guestrooms plus 12 luxury suites and an indoor and an outdoor rooftop bar and event venue overlooking the stunning San Diego skyline.
It will stand 14 stories high on the corner of West Ash Street and State Street, and will offer hotel guests and local residences access to a 28,000-square-foot FIT Athletic Club, a regional wine shop featuring sales and tasting room from great Southern California and Northern Mexico wineries, and a sensibly sourced restaurant and rooftop social venues.
“The shortage of quality hotel rooms in the downtown area of San Diego, in particular a hotel that offers the guest a full-service hotel experience in a boutique environment, was a perfect fit for the Carte Hotel concept,” Michael Katz, Peak Finance’s senior managing director, told CPE.
“The difficulty in acquiring approvals to build a new hotel in this marketplace created a window of opportunity to build and complete the project with an attractive financial financing package. The growth of San Diego’s convention and tourist business coupled with the strong experienced local developer provided strong fundamentals for the financing.”
Image courtesy of Peak Corporate Network