New York’s Dune Real Estate Partners and San Jose, California-based DiNapoli Capital Partners have refinanced the 802-room Hyatt Regency San Francisco with a $130 million senior mortgage from Mesa West Capital, a Los Angeles-based portfolio lender.
“San Francisco is one of the best-performing hospitality markets in the United States with occupancy in excess of 80 percent, and this is an asset that is outperforming the market in both rate and occupancy,” Ronnie Gul, a Mesa West principal, said in a statement. “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 four-year loan was made on behalf of Mesa West Real Estate Income Fund II, according to data provider Real Capital Analytics. Goldman Sachs previously had originated a $157.5 million first mortgage on the property, which the joint venture purchased for about $210 million in 2007.
Since acquiring the property, the sponsors have made about $19 million in capital expenditures at the 19-story hotel, including a new Regency Club on the top floor and a new 24-hour fitness center. The property, which is located near the waterfront in San Francisco’s financial district, also features 67,000 square feet of event space, 17,000 square feet of exhibit space and 35 meeting rooms.