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

TRD 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
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
Interest rate drops spur loan requests from multifamily borrowers (Credit: iStock)

Multifamily owners rush to refinance their mortgages

Multifamily owners rush to refinance their mortgages
From left: Alan, Adam, and Alex Shekhter, with renderings of 501 Broadway and 601 Colorado (Credit: WS Communities and LinkedIn)

Shekhters’ WS Communities lands $157M loan to build 850 rental units in Santa Monica

Shekhters’ WS Communities lands $157M loan to build 850 rental units in Santa Monica
1314 7th Street, Santa Monica and Divco West CEO Stuart Shiff

Rockwood Capital pays $66M for Santa Monica phone building

Rockwood Capital pays $66M for Santa Monica phone building
Best of TRD 2019 promo

Coming soon: The Real Deal’s Best of 2019

Coming soon: The Real Deal’s Best of 2019
Adam Shekhter and the 1415 5th Street project

WS Communities boosts affordable housing plans in Santa Monica

WS Communities boosts affordable housing plans in 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...