The InterGroup Corporation Announces Strategic Refinancing of Hilton San Francisco Financial District Hotel
Rhea-AI Summary
The InterGroup (NASDAQ: INTG) has announced the successful refinancing of its subsidiary's Hilton San Francisco Financial District Hotel. The refinancing was executed through Justice Operating Company, , securing a $67 million mortgage loan with PRIME Finance at SOFR plus 4.80% interest rate, with an interest rate cap limiting SOFR exposure to 4.50%.
Additionally, Justice Mezzanine Company, modified its existing mezzanine loan with CRED REIT Holdco for $36.3 million at a fixed 7.25% annual interest rate. Both loans mature in two years with options to extend for three additional one-year periods, enhancing the company's financial flexibility and stability.
Positive
- Secured substantial refinancing totaling $103.3M for flagship hotel asset
- Interest rate risk protection through SOFR cap at 4.50%
- Flexible loan terms with 2-year maturity and three 1-year extension options
- Fixed rate of 7.25% on mezzanine loan provides predictable cost structure
Negative
- High interest rates: mortgage loan at SOFR+4.80% and mezzanine loan at 7.25%
- Increased debt load through refinancing may impact financial metrics
News Market Reaction
On the day this news was published, INTG gained 3.76%, reflecting a moderate positive market reaction.
Data tracked by StockTitan Argus on the day of publication.
SAN FRANCISCO, CA, April 01, 2025 (GLOBE NEWSWIRE) -- The InterGroup Corporation (NASDAQ: INTG) ("InterGroup" or "the Company"), the parent company of Portsmouth Square, Inc. (OTC: PRSI) (“Portsmouth Square”), today announced the successful refinancing of its subsidiary's flagship asset, the Hilton San Francisco Financial District Hotel. This strategic refinancing positions the Company and its subsidiaries for improved financial flexibility and stability in managing their premier hospitality assets.
The refinancing was executed through Justice Operating Company, LLC ("Justice"), a wholly owned subsidiary of Portsmouth Square. Justice secured a
In addition, Justice Mezzanine Company, LLC another subsidiary of Portsmouth Square, has modified its existing mezzanine loan with CRED REIT Holdco LLC, obtaining a principal amount of
"This refinancing underscores InterGroup’s ongoing commitment to strategic financial management, enhancing financial stability and operational flexibility across our companies," said David Gonzalez, Chief Operating Officer of InterGroup. "Securing these agreements demonstrates our dedication to prudent financial stewardship and positions us favorably for continued growth and long-term value creation."
Further details of the refinancing transactions will be available in the Company’s forthcoming periodic report filings with the Securities and Exchange Commission (SEC).
ABOUT THE INTERGROUP CORPORATION
The InterGroup Corporation is a Delaware corporation formed in 1985, as a successor to Mutual Real Estate Investment Trust, a New York real estate investment trust created in 1965. The Company has been a publicly-held company since M-REIT's first public offering of shares in 1966 and currently trades on the NASDAQ Capital Market.
Contact:
David Gonzalez, COO
(310) 889-2559
FAQ
What are the key terms of INTG's new Hilton San Francisco hotel refinancing?
How has INTG protected against interest rate risk in the new refinancing?
What is the total refinancing amount secured by INTG for the Hilton San Francisco Financial District?
When do INTG's new Hilton San Francisco hotel loans mature?
