S.D. Malkin Properties Secures $265M for Oceanside Hotel
The borrower secured the loan to refinance the 161-key Mission Pacific boutique hotel and The Seabird Resort, a 226-key full-service resort.
S.D. Malkin Properties has secured $265 million to refinance a hotel in Oceanside, California. The property includes refinance the 161-key Mission Pacific boutique hotel and The Seabird Resort, a 226-key full-service resort. The borrower secured a floating-rate, interest-only loan through ACORE Capital to payoff a construction loan that include mezzanine funds.
The new-construction hotel was completed in 2021. The property is on a 2.75-acre, two-block site on the ocean, offering guests ocean views and beach access. Hyatt operates the hotel, which features food and beverage options, interior meeting and function space, two pools with ocean views and access to the Oceanside Pier.
Senior managing director Timothy Wright and director Olga Walsh of the JLL Capital Markets team represented the borrower in the deal. According to Walsh, there was strong interest from capital providers for the deal due to the strong sponsorship, and as a result, the team was able to secure favorable terms. In addition, Jeremy Cohen, SVP of S.D. Malkin Properties, said the deal was a “validation of the bespoke hotels” in Oceanside.
San Diego’s hotel market has had robust activity in the last year. In December, a fund affiliated with Trinity Real Estate Investments acquired a 50% interest in the Omni San Diego Hotel from JMI Realty, the original developer. JMI will retain a 50% interest in the property and will continue to serve as the manager. Located in the Gaslamp Quarter, the property has 511 rooms and 13,000 square feet of fully leased retail space.
The same month, Pebblebrook Hotel Trust acquired the AAA Four Diamond 210-room Estancia La Jolla Hotel & Spa for $108 million, and has retained Noble House Hotels & Resorts to manage the property. Pebblebrook funded the acquisition $46 million of cash on hand, and it assumed a $62 million of existing non-recourse, secured debt, which matures in September 2028.
And, in September, a partnership between Kawa Capital Management and CL Hotels acquired Hotel La Jolla in San Diego. The property has 11 stories and 110 guestrooms and is operated by Curio Collection Hilton, which renewed its lease for 20 years. The sales price was not disclosed.