Rockbridge Capital Lends $38M for Redondo Beach Hotel in LA
Noble House Hotels & Resorts owns the Portofino Hotel with a 181-slip marina
By Greg Cornfield July 22, 2021 10:50 am
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The owner of a marina hotel in Los Angeles’ South Bay has secured new financing as the post-pandemic recovery continues in 2021.
Sources said Rockbridge Capital provided $38 million of interim first mortgage leasehold financing for the 161-room Portofino Hotel & Marina in Redondo Beach. The five-year, floating-rate, LIBOR-based loan replaces a maturing finance. Property records show a $16.2 million loan from Preferred Bank from a year and a half ago.
Noble House Hotels & Resorts owns the Portofino Hotel at 260 Portofino Way. The property includes a 181-slip marina and 19 apartments, as well as a restaurant, lounge, lobby bar, meeting and event space, outdoor pool, a fitness center, and more.
Sonnenblick-Eichner Company arranged the financing.
Many more people are traveling this year, and Rockbridge’s loan shows sustained confidence in hospitality coming out of the pandemic, which is particularly notable after COVID-19’s largely outsized impact on hotels. Trepp data shows that year-end occupancy was similar to 2019 rates for all property types except for lodging, which dropped from 75 percent to 48 percent. For comparison, retail and multifamily occupancy both ended 2020 at about 93 percent.
“In 2020, average NOI and occupancy for lodging loans fell by 70.5 percent and 35.6 percent, respectively, from the year prior,” Catherine Liu, an associate manager at Trepp, wrote. “Full-service hotels, given their dependency on leisure and business travel, suffered the most severe financial damages, far exceeding that of all other property subtypes, while extended stay accommodations, often considered a temporary housing alternative for displaced workers, fared better than all other hospitality sectors.”
Gregory Cornfield can be reached at gcornfield@commercialobserver.com.
