Historic San Francisco hotel perched on top of a famous hill is messing up a loan

Public documents have shown that a historic hotel in San Francisco, perched atop a famous hill, has defaulted on a loan which means the property is facing foreclosure on its overdue financing.

The Huntington Hotel, a nearly century-old condominium tower located in San Francisco’s posh Nob Hill, is defaulting on its mortgage, according to documents filed Aug. 16 with the San Francisco County Sheriff’s Office.

The loan in default totaling $56.2 million was provided by Deutsche Bank’s New York branch, which is seeking foreclosure on the overdue loan, according to San Francisco real estate records.

The financial woes and mortgage delinquency that has gripped the Huntington Hotel are reminders that the coronavirus outbreak continues to affect the housing, travel, dining and entertainment sectors, sometimes in unexpected ways and places.

The cable car passes the Huntington Hotel, a luxury historic hotel located at 1075 California Street above Nob Hill in San Francisco. (Google Maps)

San Francisco’s economy in particular continues to suffer from the fallout from the business shutdowns that state and local government officials have begun as they seek to combat the spread of the fatal bug.

In a strange development, the amount of financing provided at the time of purchase exceeded what the borrower, a subsidiary of Woodridge Capital, had paid for the hotel tower, public filings show.

Los Angeles-based Woodridge Capital bought the 136-room hotel in 2018, paying $51.9 million, according to real estate documents.

Including fines, late fees and unpaid interest, Deutsche Bank claims the Woodridge Capital subsidiary owes the lender a total of $61.1 million, the default notice states.

The hotel was originally built in 1924 as the Huntington Apartments. At the time it was built, the structure was the first tall steel and brick building west of the Mississippi River.

The Huntington Hotel, a luxury historic hotel at 1075 California Street above Nob Hill in San Francisco.  (Google Maps)
The Huntington Hotel, a luxury historic hotel at 1075 California Street above Nob Hill in San Francisco. (Google Maps)

The San Francisco tax collector has filed a notice of a tax lien against the property, according to a filing published September 9.

In a new sign that the hotel has turned upside down on hard times, the accommodation worker says the facility is now closed.

“Nob Hill Spa, Big 4 Restaurant, and The Huntington Hotel will all remain closed until further notice,” according to a post on the hotel’s website homepage.

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