Mesa West Capital has provided a partnership between affiliates of Dune Real Estate Partners LP and DiNapoli Capital Partners LLC with a $130 million first mortgage loan to refinance the 802-room Hyatt Regency San Francisco.
After acquiring the 19-story hotel in 2007, the ownership group made significant capital improvements to the property, including a new Regency Club on the top floor and a comprehensive renovation of the Regency Club rooms on the top two guest floors. The Regency Club at the property provides guests with exceptional views of the San Francisco Bay, the Ferry Building, and the Embarcadero Waterfront.
The hotel, which is located on the waterfront in the city's Financial District, features 67,000 sq. ft. of function space, 17,000 sq. ft. of exhibit space and 35 meeting rooms, a new 24-hour fitness center and The Eclipse Restaurant and Lounge.
With market occupancy in excess of 80 percent, San Francisco is currently one of the best performing hospitality markets in the U.S., and this is an asset that is outperforming the market in both rate and occupancy, according to Mesa West Principal Ronnie Gul, who originated the financing. The Hyatt Regency San Francisco benefits from strong sponsorship, an excellent location, no new supply, a strong office market and robust convention and leisure demand. The hotel is also well positioned to take advantage of the increased traffic resulting from such major events coming to San Francisco such as the United States Golf Association's U.S. Open at the Olympic Club this year and the America's Cup in 2013.
Eastdil Secured arranged the financing.