3 Japanese Banks Involved in Fairmont Hotel Refinancing
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Wells Fargo Realty Finance has announced the refinancing of the landmark Fairmont Hotel in San Francisco through an arrangement with three Japanese banks.
The loan, involving Mitsui Manufacturers Bank, Mitsui Trust & Banking Co. and Sumitomo Bank, is priced to float at a thin margin above LIBOR (London Interbank Offered Rates).
While figures for the refinancing were not available, industry sources estimate the 600-room hotel property to be worth about $150 million, based on a $250,000 per room value of other hotels of similar caliber, such as the Ritz-Carlton and the Santa Barbara Biltmore.
In another transaction, Wells Fargo Realty Finance of Santa Monica has provided permanent financing of $91 million for Lake Merritt Plaza, a 27-story office tower opened in the Oakland area in 1986. Financing was obtained through the Teachers Insurance & Annuity Assn. of New York.
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