November 15, 2017
Aliso Viejo, CA-based Sunstone Hotel Investors, Inc. refinanced the existing $220 million mortgage loan secured by the Hilton San Diego Bayfront with a new $220 million mortgage loan. The 1,190-room hotel is owned by a joint venture between subsidiaries of Sunstone and Park Hotels & Resorts Inc., in which Sunstone owns a 75% interest in the joint venture.
The loan has a three-year initial term, and three one-year extension options. The interest-only loan provides for a floating interest rate of LIBOR plus 1.05% with a 25 basis point increase during the final one-year extension period, if extended.
The refinancing is expected to reduce Sunstone’s consolidated annual cash interest expense by approximately $2.6 million. The loan replaces the existing loan that was scheduled to mature in August 2019, and had a floating interest rate of LIBOR plus 2.25%.
For comments, questions or concerns, please contact Dennis Kaiser