Thorofare Capital has funded an initial advance of $20,740,000 with an additional $6,000,000 optional future funding facility for the acquisition of the Palihotel San Francisco, an 82-room luxury boutique hotel located in the Union Square submarket of San Francisco, California

The Property is located two blocks from San Francisco’s Union Square and one block from Apple’s Flagship San Francisco store. The asset benefits from the neighborhood’s demand generators, which include, among others, luxury retail shopping, Union Square, and the Moscone Convention Center. The Moscone Convention Center (1.0 mile from subject) is undergoing a $500 million expansion, which is expected to be completed in mid-2018. The expansion will add more than 500,000 square feet of exhibition space.

The loan will have an initial term of 18 months with a flexible prepayment structure, and is competitively priced over the 30-day LIBOR index. The loan will feature an option to up-size the facility, subject to lender’s requirements, by $6,000,000 within the first nine (9) months of the loan term for the planned renovations.

The sponsor is a Los Angeles-based joint venture between a boutique hotel operating company and a private equity real estate fund manager.