Peak Finance worked with San Diego Carte Hotel and Pierpoint Management as their mortgage banker to structure and secure the financing package for a new $70-million hotel development. The Carte Hotel & Suites, by the Curio Collection by Hilton, will rise 14 stories high on the corner of West Ash Street and State Street in San Diego’s Little Italy neighborhood. Peak Finance sourced a combination of senior construction financing and a preferred equity investment in obtaining proceeds of $49.7 million for the construction phase of the project.
“We are thrilled to have had the opportunity to provide cost-effective and creative financing for San Diego Carte Hotel,” said Michael Katz, senior managing director of Peak Finance. “We anticipate the Carte Hotel & Suites to be one of the premiere boutique destination hotels in the popular Little Italy area of San Diego. Sourcing the right capital structure for ground up, full service hotels is always a challenging task, but we are pleased to have filled the capital stack with a construction lender and preferred equity provider who understands the market fundamentals and the strong development team.”
The new boutique hotel will have 228 rooms, plus 12 luxury suites and an indoor and an outdoor rooftop bar and event venue overlooking the San Diego skyline. Additionally, an upscale, full-service locally based athletic club and spa will allow guests to enjoy 30,000 square feet of health and fitness space. The main level of the hotel will also include a wine and tasting room showcasing wines from more than 50 regional wineries and offer daily tastings and events.
The hotel is being developed by San Diego Carte Hotel/Pierpoint Management based in San Diego.