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Sbe scores $425M refi for Delano South Beach, Hudson Hotel

Delano South Beach. Inset: Sam Nazarian
Delano South Beach. Inset: Sam Nazarian

Sam Nazarian’s Sbe secured a $425 million refinance of its Delano South Beach and Hudson Hotel properties. 

Column Financial provided the loan, which breaks down to a $280 million mortgage and a $145 million junior mezzanine loan, according to a press release. Both mature on February 9, 2020 with two one-year extension options.

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Sbe and its partners Yucaipa and Cain Hoy closed on the $800 million acquisition of Morgans Hotel Group in December, in a deal that included management of 13 hotels and ownership of Delano, Hudson and Clift in San Francisco.

Last year, Morgans received an extension on its $450 million loan package for the Miami and New York hotels. In 2015, the two properties generated aggregate revenues of nearly $128.5 million with a combined net operating income of $35.2 million, according to data from CMBS analytics firm Trepp.

Delano, at 1685 Collins Avenue, has 194 hotel rooms while the Hudson, at 356 West 58th Street, has 866 keys. – Katherine Kallergis

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