The owner of Santa Monica’s Hotel Casa del Mar and Shutters on the Beach closed a $430 million refinance deal for the posh lodges this week.
Edward Thomas Corporation refinanced the properties together with a $356.6 million senior mortgage loan and $73.7 million in mezzanine debt with two Morgan Stanley divisions, according to Proskauer attorney Al Stemp, Edward Thomas’s representative. Morgan Stanley will securitize senior mortgage but not the mezzanine portion.
The terms are the same for both — a two-year term with five one-year renewals. The blended spread between them is 245 basis points over LIBOR. The deal is Edward Thomas Corp.’s fourth since 2010. The last three have been to capitalize on favorable interest rates and terms, said Stemp, who worked on all four.
Eastdil Secured brokered the deals.
White House interior designer Michael S. Smith decorated the interiors of both hotels, which sit on either side of Pico Boulevard to the south of Santa Monica Pier. They’re part of a stretch of mostly high-end hotels between Ocean Avenue and Santa Monica Beach.
Among their competitors is the Miramar Hotel, north of Santa Monica Pier, which is planning a major redevelopment project that will add two new buildings with 312 hotel rooms and 60 condominiums.