Santa Monica hotels refinance with $430M Morgan Stanley loan

Owner of Hotel Casa del Mar and Shutters on the Beach closed their fourth refinance in eight years

Los Angeles /
Jul.July 13, 2018 03:00 PM
Shutters on the Beach and Hotel Casa del Mar (Credit: Edward Thomasco)

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.


Related Articles

arrow_forward_ios
Colorado Campus at 2041-2115 Colorado Avenue and Northwestern Mutual CEO John E. Schlifske

Northwestern Mutual picks up Santa Monica office campus for $166M

Northwestern Mutual picks up Santa Monica office campus for $166M
Macerich CEO Thomas O’Hern and Santa Monica Place mall

Here’s what tenants are paying at Macerich’s Santa Monica Place

Here’s what tenants are paying at Macerich’s Santa Monica Place
CEO of Amazon Web Services Andy Jassy

A top Amazon exec buys in Santa Monica

A top Amazon exec buys in Santa Monica
Brookfield CEO Brian Kingston and 725 South Figueroa Street (Google Maps)

Brookfield lands $305M refi for Ernst & Young Plaza in DTLA

Brookfield lands $305M refi for Ernst & Young Plaza in DTLA
WS Communities CEO Scott Walter and VP of Finance Gregory Proniloff, Madison Realty Capital’s Josh Zegen, 1433 Euclid Street in Santa Monica; and rendering of mixed-use project at 3030 Nebraska Avenue in Santa Monica (Credit: Google Maps and Madison Realty Capital)

WS Communities nabs $150M loan for six renovations and a development site

WS Communities nabs $150M loan for six renovations and a development site
6156 Ramirez Canyon Road and 20 37th Place (Credit: Redfin)

This way to the beach: Homes next to ocean topped priciest sales

This way to the beach: Homes next to ocean topped priciest sales
Shops were looted in Santa Monica (Credit: Mario Tama/Getty Images)

Looters cleared out retailers while police clashed with protesters in Santa Monica and Long Beach

Looters cleared out retailers while police clashed with protesters in Santa Monica and Long Beach
Related California CEO William Witte and the project site (Credit: Google Maps)

Related California eyes latest project in Downtown Santa Monica

Related California eyes latest project in Downtown Santa Monica
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...