The financing is a floating-rate, first mortgage, which was arranged on behalf of SD Bridgeworks by Gordon, who is principal and managing director of Sonnenblick-Goldman's International Lodging & Leisure Group, and his Sonnenblick-Goldman colleagues, associate director Lorena Heredia and senior associate Mark Owens.
"There was a significant amount of lender interest because of the quality of the asset and the strong reputation of the borrower," Gordon tells GlobeSt.com, adding that these factors allowed SD Bridgeworks to achieve a deal that "exceeded their expectations."
Gordon sees the Bridgeworks transaction as another example of "lenders continuing to be supportive of the lodging industry." He tells GlobeSt.com that "there is an interesting set of circumstances in the marketplace, in that there are historically low interest rates and high lender interest," which he sees as a "national phenomenon."
The Bridgeworks project, which was completed in 2000, is located on a block bounded by Fourth and Fifth avenues and K and L streets, directly across from the 1.7-million-sf San Diego Convention Center, Petco Park baseball stadium, and the Gaslamp Quarter National Historic District. Bridgeworks is comprised of a 23,000-sf retail component; a subterranean parking facility; and the 282-room Hilton San Diego Gaslamp Quarter hotel that features the Artesia Day Spa, New Leaf Restaurant & Bar, and Lou & Mickey's Restaurant and Cocktail Lounge.
The project's owner, SD Bridgeworks LLC, is a partnership between SD Malkin Properties and Interstate Hotels and Resorts. SD Malkin specializes in property development, which includes urban mixed-use projects in the US. Interstate is one of the nation's largest independent hotel operators, with more than 390 hotels worldwide currently under its management.
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