George Smith Partners Secures $45MM in Financing for Iconic San Francisco Hotel

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SAN FRANCISCO, Calif. (April 9, 2018) – George Smith Partners, one of the nation’s leading commercial real estate capital markets advisors, has successfully arranged $45 million in bridge refinancing for the 131-room San Francisco Proper Hotel, located in the heart of the city’s vibrant Mid-Market neighborhood. 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, Los Angeles-based The Kor Group, a lifestyle real estate investment firm with more than $3 billion in assets, to arrange the financing for the historic flatiron building at the triangle of McAllister, Market and Seventh Street.

“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, who cited The Kor Group’s proven track record of developing and operating hotels as an important factor that Davies’ team communicated to its lender network. “Our firm specializes in capital advisory services for entrepreneurial firms, and 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 the Sponsor to focus on its continued operational success and further establishes the property as the premiere luxury lifestyle hotel in San Francisco.

San Francisco Proper Hotel is located in the heart of the city, within walking distance of major landmarks, cultural institutions, architectural marvels, cutting-edge tech companies, and more. Designed by international tastemaker Kelly Wearstler, the hotel offers iconic interiors inspired by the city’s pre-modernist European influence, providing a luxurious yet residential feel. The hotel is host to two award-winning food and beverage concepts, including Villon, an all-day dining destination, and Charmaine’s, a rooftop bar boasting 360 degree views of the city, and offers a multitude of first-class amenities, including Bellino linens, Aesop bath and body products, Vifa speakers, Aireloom mattresses, and 24/7 room service.

The Proper Hotel is located at 1100 Market Street in San Francisco, California.

About George Smith Partners
Celebrating 25 years in business, George Smith Partners is a leading national provider of capital market advisory services to the commercial real estate industry. The firm specializes in arranging financing for commercial and multifamily properties, including acquisition, construction, bridge and permanent loans, as well as mezzanine loans, highly leveraged participating loans and joint venture equity. The company has arranged more than $44 billion in financing since its inception. Additional information about George Smith Partners is available at www.GSPartners.com.

West Coast Commercial Real Estate News