ICC purchased the nonperforming debt on the leasehold improvements in January of 2005. A friendly deed in lieu was completed in June of 2005 at which time new management was engaged and an extensive renovation undertaken. In October of 2011, Interwest acquired fee title to the land thus consolidating the two components into a fee simple asset.
Following acquisition of the land long term debt was placed on the asset and a second-tier renovation undertaken to capitalize on the asset’s unique positioning in the San Francisco Union Square submarket.
The hotel went through a series of renovations, each elevating the asset value and positing the hotel for continued growth. The retail tenancy was substantially enhanced and features a mix of high-quality tenants.
All equity was returned early in the investment cycle and the property consistency delivers outpaced annual distributions to ownership. Ownership is now focused on further enhancing hotel amenities and programming to ensure the property remains positioned as a core asset in the downtown San Francisco market.