SAN FRANCISCO — One of San Francisco’s historic hotels nestled atop a prominent hill has gone into default, meaning the property faces foreclosure for delinquent financing, public records show.
The Huntington Hotel, a nearly century-old lodging tower perched on San Francisco’s posh Nob Hill, is in default on its mortgage, according to documents filed Aug. 16 with the San Francisco County Recorder’s Office.
The delinquent loan totaled $56.2 million and was provided by the New York branch of Deutsche Bank, which is seeking to foreclose on the delinquent loan, according to San Francisco property records.
The financial problems and mortgage delinquencies that engulfed the Huntington Hotel are a reminder that the coronavirus outbreak continues to affect the lodging, travel, restaurant and entertainment sectors, sometimes in unexpected ways and places.
San Francisco’s economy in particular continues to reel from the effects of business shutdowns imposed by state and local government officials in an effort to combat the spread of the deadly bug.
In a strange twist, the amount of financing provided at the time of the purchase exceeded what the borrower, an affiliate of Woodridge Capital, paid for the hotel tower, public records show.
Los Angeles-based Woodridge Capital bought the 136-room hotel in 2018, paying $51.9 million, according to real estate filings.
Including penalties, late fees and unpaid interest, Deutsche Bank claims the Woodridge Capital affiliate owes the lender a total of $61.1 million, the default notice said.
The hotel was originally built in 1924 as the Huntington Apartments. At the time it was built, the structure was the first steel and brick building west of the Mississippi River.
The San Francisco Tax Collector’s Office filed a notice of tax lien against the property, according to a statement released Sept. 9.
In a further indication that the hotel has fallen on hard times, the accommodation operator says the facility has closed its doors for the time being.
“Nob Hill Spa, Big 4 Restaurant and Huntington Hotel will remain closed until further notice,” according to a post on the front page of the hotel’s website.
However, it is currently uncertain when – or if – the hotel may reopen, or if the restaurant or spa will resume operations.
The hotel operator touts the Huntington’s amenities and luxurious setting.
“The Huntington Hotel specializes in providing modern amenities and convenience in a historic space,” the website says.
The building is close to other similarly famous hotels: Fairmont San Francisco, InterContinental Mark Hopkins and Stanford Court.
The Huntington Hotel, according to the building’s website, is “in the midst of San Francisco’s most exclusive and exciting neighborhood.”