$78.4 Million Non-Performing Loan | Closed Hotel - Redevelopment Opportunity | San Francisco, CA

Attributes

Loan status

Non-Performing

Maturity date

16/05/2023

Unpaid principal balance

SGD 106,538,586

Keys

131

Building area net

4,944 m²

Year built

1908

Year renovated

2017

Zoning

C-3-R

Asset Description

Jones Lang LaSalle (“JLL”) has been retained on an exclusive basis by the Seller to arrange the sale of a $78.4 million non-performing loan (the “Note” or “Loan”). The Loan is secured by the first priority deed of trust in a vacant and unencumbered, upper upscale, hotel located in the CBD of San Francisco, CA (the “Property” or “Collateral”). As of October 2024, the Loan is non-performing due to a payment and maturity default.

Constructed in 1908 and renovated in 2008 & 2017, the six-story Property features 131 keys and 8,652 square feet of retail space on the ground floor. Situated on a well-traveled corner lot, the historic Property is currently unencumbered by any existing management and franchise agreements. As of October 2024, the Hotel is non-operational with a receiver in-place.

The offering presents investors the opportunity to acquire the Loan at a favorable basis with a direct path to ownership of a Property that features significant redevelopment optionality.

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Investment Highlights

Direct Path to Title

The non-performing Loan provides investors the ability to potentially step into the ownership position on a historic property, at a significant discount to the Borrower’s acquisition basis in 2015.

Blank Canvas - with Air Rights and Liquor License

Currently non-operational, the unencumbered hotel provides investors the optionality to reposition the property through flexible in-place zoning, adaptable hotel infrastructure, and ownership of aerial rights.

Receivership In-Place

Trigild was appointed by the court to serve as acting receiver.

Transit-Oriented Location

Located steps away from the nearest cable car, the Property is immersed in close proximity to a variety of excellent public transit, including the BART, cable/street cars, and two ferry lines.

Union Square Staple

The Property is situated in Union Square, a well known retail district home to many notable upscale department stores and luxury boutique shops, and is strategically positioned minutes away from popular neighborhoods such as Chinatown and the Financial District.