X

Thank you for sharing!

Your article was successfully shared with the contacts you provided.

SAN FRANCISCO-Work has begun for an eight-story, 200-room luxury boutique hotel on the waterfront, across from the recently restored Ferry Building. The co-developers are Joie de Vivre Hospitality and Emerald Fund, Inc. Webcor Construction, Inc. is the general contractor, and Heller-Manus Architects is the architect. A grand opening is scheduled for March 2005.

The $50-million Hotel Vitale is being funded with a $25-million senior loan from Union Labor Life Insurance Co. and an $8-million mezzanine loan from Hall Financial. The borrowers are providing the remainder. The senior debt is a two-year construction loan with a three-year mini-perm and an interest rate in the 6% range. The mezzanine loan has a five-year term and an interest rate in the high teens.

Emerald Fund is a locally based residential real estate development company. Joie de Vivre Hospitality is one of the city’s largest and fastest growing hospitality companies, with 25 boutique hotels, two day spas and Costanoa, a coastal lodge and camp. Company founder/CEO Chip Conley credited Hall Financial with being able to see through the current weak capital market for the hospitality sector. “They had the vision to see past the current soft market conditions in San Francisco,” says Conley.

Hall Financial SVP Mark LaCourse, who originated the company’s loan, says the biggest advantage this hotel project has is its location. In addition to being on the waterfront and across from a major attractor such as the Ferry Building, the immediate area is one of the city’s major transportation hubs, with BART coming in from the airport and elsewhere, all sorts of bus routes originating in the area and ferries coming across from all areas of the bay. “We’re making a bet that 24 months from now, when the hotel is delivered, the economic situation will be different,” says LaCourse, who credits John Manning of the investment bank Buchanan Street Partners for bringing Hall Financial and the developers together and helping negotiate the transaction.

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 3 free articles* across the ALM subscription network every 30 days
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?

GlobeSt

Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2020 ALM Media Properties, LLC. All Rights Reserved.