San Francisco, CA, August 19, 2019 – PCCP, LLC announced today it has provided a $20 million, fixed-rate, mezzanine loan for the refinance of the Hilton San Francisco Financial District. The 544-key full-service hotel is located at 750 Kearny Street in downtown San Francisco, CA, and is owned and operated by Justice Investors, LP, an entity controlled by The InterGroup Corporation.
The Hilton San Francisco Financial District is a 26-story tower located in downtown San Francisco at the corner of Washington Street and Kearny Street. With no hotel rooms below the fifth floor, the hotel enjoys city and bay views from all of its guest rooms. The hotel features a restaurant and a lobby bar, 21,936 square feet of meeting space, a fitness center, a business center, and an executive lounge. Going-forward, ownership plans a full renovation of the corridors and guestrooms. Over the past 12 months, new 55” and 65” 4K smart TVs were installed, and a state-of-the art hi-speed internet system was implemented along with new wiring including fiber for all guestrooms, meeting rooms and common areas.
“PCCP is pleased to provide this loan to an experienced owner/operator of a strong-performing Hilton hotel ideally located in the heart of San Francisco’s Financial District,” said Dorian Farhang vice president with PCCP. “The San Francisco Bay Area continues to be one of the top lodging markets in the U.S. due to its strong economy, limited supply growth, and positioning as an attractive travel destination.”
The property enjoys consistently high occupancy and is centrally located in downtown San Francisco, a block away from the Transamerica Pyramid and walkable to San Francisco’s major attractions such as Union Square and Fisherman’s Wharf. Chinatown is directly across a pedestrian footbridge that runs from the Hotel to Portsmouth Square Park. The property’s location, positioning, size, and Hilton’s reservation system draws substantial business from tourists, business travelers, and convention center travelers.
About The InterGroup Corporation
The InterGroup Corporation is a Delaware corporation formed in 1985, as a successor to Mutual Real Estate Investment Trust, a New York real estate investment trust created in 1965. The Company has been a publicly-held company since M-REIT’s first public offering of shares in 1966 and currently trades on the NASDAQ Capital Market under the symbol: “INTG”. Over the years, the Company has evolved into a diversified operating company with operations in multi-family and commercial real estate and an interest in the hospitality industry through its investment in the Hilton San Francisco Financial District. Management continuously seeks opportunities to build shareholder’s value by improving its current operations and through its investment strategies in the national and international financial markets.
About PCCP, LLC:
PCCP, LLC is a real estate finance and investment management firm focused on commercial real estate debt and equity investments. PCCP has $9.4 billion in assets under management on behalf of institutional investors. With offices in New York, San Francisco, Atlanta, and Los Angeles, PCCP has a 21-year track record of providing real estate owners and investors with a broad range of funding options to meet capital requirements. PCCP underwrites the entire capital stack to exploit inefficiencies in the market and provide investors with attractive risk-adjusted returns. Since its inception in 1998, PCCP has successfully committed $19.8 billion of capital through a series of investment vehicles including private equity funds, separate accounts and joint ventures. PCCP continues to seek investment opportunities with experienced operators seeking fast and reliable capital.