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.