X

Thank you for sharing!

Your article was successfully shared with the contacts you provided.

SAN FRANCISCO-Griffin Capital has acquired Hotel Palomar, a 195-room luxury boutique hotel located on the corner of Fourth and Market streets Downtown San Francisco. The Los Angeles-based investor says it paid a limited partnership that includes a Kimpton Hotels affiliate $36.3 million for the asset.

Hotel Palomar occupies the top five floors of an historic and architecturally significant building located in the South of Market neighborhood. Kimpton Hotels opened the hotel in 1999. The locally based company has signed a long-term agreement to continue managing the property for Griffin.

The acquisition is Griffin Capital’s first hotel purchase in the Bay Area, where it owns several office properties. “We are big believers in the current and future prospects for San Francisco,” says Griffin Capital chief investment officer Michael Escalante. “We feel the San Francisco economy is just now hitting its stride, and the local hotel market is entering a period of increasing strength, which will benefit well-managed, well-located properties like Hotel Palomar.”

The hotel is in close proximity to the Moscone Convention Center, the Yerba Buena museums and the Westfield San Francisco Centre, which recently underwent a $420-million renovation and expansion. The Barney’s flagship store is also nearby.

“We are bullish on the SOMA neighborhood,” says Escalante. “It’s an ideal place to own a luxury hotel.”

Hypo Real Estate Capital Corp. provided Griffin Capital a $27.2-million, 10-year fixed-rate first mortgage acquisition financing. Jones Lang LaSalle Hotels represented the seller and Hypo Real Estate Capital Corp.

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
  • 1 free article* every 30 days across the ALM subscription network
  • 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 © 2021 ALM Media Properties, LLC. All Rights Reserved.