Financial Findings: Loans for San Diego Pendry, WoodSpring Suites, St. Julien Hotel and Spa

NATIONAL REPORT—Hoteliers have made a series of financing deals with the assistance of MidCap Funding, George Smith Partners (GSP) and Grandbridge. Let’s dig into the details:

George Smith Partners Secures $85M Bridge Loan

Commercial investment banking firm George Smith Partners has secured an $85-million bridge loan for the San Diego Pendry Hotel, a new luxury hotel brand operated under Montage Hotels & Resorts.

Located in downtown San Diego’s historic Gaslamp Quarter, Pendry San Diego is a 317-room trophy asset that features a rooftop pool, a spa, six restaurants and bars and 35,000 sq. ft. of high-end meeting and event space.

“While Pendry San Diego has only been open for eight months, our team at George Smith Partners—who originally secured the construction loan for the hotel—has now secured bridge financing to repay the construction facility,” said Principal Malcolm Davies, who arranged the financing along with GSP VP Evan Kinne and assistant VP Alex Rossinsky.

GSP garnered interest from numerous financing providers, and the sponsor ultimately selected a seasoned lender who has a deep understanding of the hospitality industry as the financier of the new $85-million loan, according to the company.

“The lender understood the strength in the asset, the strong capabilities of the sponsor, and market demand of both business and leisure travelers who will frequent the property over the coming years,” said Davies.

MidCap Arranges $7.5M for Two WoodSpring Suites

MidCap Funding has arranged a $7.5-million loan for the refinance of two WoodSpring Suites-branded hotels totaling 242 rooms in Memphis, TN.

The 10-year loan was structured with a 25-year amortization schedule and executed via CMBS. Loan proceeds were used to take out the existing acquisition financing.

Taylor W. Grace, managing partner at MidCap Funding, negotiated the refinance on behalf of the borrower, an affiliate of Terrapin Investments & Management Corporation, headquartered in Aspen, CO. Terrapin operates 13 hotels in six states, and in addition to WoodSpring Suites, is associated with major brands including Marriott, Hilton, Choice and IHG, according to the company.

“Though we faced several challenges with this loan, by working closely with the team at Terrapin, we were able to provide a successful execution of this refinance,” said Grace. “It extends upon MidCap’s long history of working with the Value Place/WoodSpring Suites flag. We sincerely hope to work with Terrapin on another transaction in the near future.”

Grandbridge Arranges $65M Hospitality Refinance

Grandbridge Real Estate Capital recently closed a $65-million first mortgage loan secured by the St. Julien Hotel and Spa, a 201-room hospitality property in Boulder, CO.

John Stewart, office manager at Grandbridge Rockies Region’s Denver office, originated the refinance loan. The permanent, fixed rate loan was funded through one of Grandbridge’s insurance company correspondents.