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Hilton SF Union Square, Parc 55 owners stopping payments on loan, firm announces

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Hilton SF Union Square, Parc 55 owners stopping payments on loan, firm announces


Monday, June 5, 2023 6:11PM

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SAN FRANCISCO (KGO) — Another blow is being dealt to downtown San Francisco. The investment firm that owns Hilton San Francisco Union Square and Parc 55 hotels is walking away from its debt and surrendering them to its lender.

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Park Hotels & Resorts has opted to cease payments on a $725 million loan, according to a press release.

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“The Company intends to work in good faith with the loan’s servicers to determine the most effective path forward, which is expected to result in ultimate removal of these hotels from its portfolio.”

The 1,921-room Hilton San Francisco Union Square is the city’s largest hotel, occupying an entire city block. Parc 55 has 1,024 rooms.

The firm cited the continued debt burden of the two hotels on its portfolio and multiple factors that have made the San Francisco market less desirable for their business.

Park Hotels & Resort’s statement says, in part:

“This past week we made the very difficult, but necessary decision to stop debt service payments on our San Francisco CMBS loan,” commented Thomas J. Baltimore, Jr., Chairman and Chief Executive Officer of Park. “After much thought and consideration, we believe it is in the best interest for Park’s stockholders to materially reduce our current exposure to the San Francisco market. Now more than ever, we believe San Francisco’s path to recovery remains clouded and elongated by major challenges – both old and new: record high office vacancy; concerns over street conditions; lower return to office than peer cities; and a weaker than expected citywide convention calendar through 2027 that will negatively impact business and leisure demand and will likely significantly reduce compression in the city for the foreseeable future. Unfortunately, the continued burden on our operating results and balance sheet is too significant to warrant continuing to subsidize and own these assets.

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Ultimately removing the loan and the hotels will substantially improve our balance sheet and operating metrics, as net leverage is reduced by nearly a full turn, while 2022 Comparable RevPAR and Comparable Hotel Adjusted EBITDA Margin as compared to 2019 would improve approximately 800 basis points and 230 basis points, respectively. In addition, reducing the negative overhang from San Francisco will allow Park to continue to focus on our key priorities to reshape our portfolio by selling non-core assets, and recycling capital to reduce leverage, invest in strategic ROI projects, and opportunistically repurchase stock and/or acquire assets.”

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San Francisco, CA

San Francisco Mission Bay coffee shop deals with break-ins as it seeks to open

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San Francisco Mission Bay coffee shop deals with break-ins as it seeks to open


A coffee shop in San Francisco’s Mission Bay hasn’t even opened yet, but has dealt with at least two break-ins over a 24-hour span.

The owners though say it’s not going to deter them from opening their business and hopes their plan will help drive some of the crime away.

Owners of Silicon Valley Coffee got a taste of how businesses are struggling with crime in San Francisco. On Sunday, Matt Baker and Vance Bjorn came in to work on their new store but ended up finding two people on their property with needles scattered everywhere.

The owners called police, officers talked to the suspects, but didn’t make any arrests.

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“Little disappointed, little shaken up,” Baker told CBS News Bay Area. “We went home and came back the next morning just to find that we were robbed and everything we had back there was gone. Including our, ironically enough, our brand new security system.”

The incident might have scared off other business owners but not these two.

“We want to work with the community, with the local representation and work with them to find solutions so that other businesses don’t have to go through this,” he said. “We’re putting a lot on the line out here to redo this space and that was a big setback for us.”

When Baker and Bjorn say they’re putting a lot on the line, they mean it. They are pouring in their money to open up this location on 4th Street, knowing that they will have to close when developers decide to break ground on a towering complex with about a thousand rental units. This maybe a temporary site for Silicon Valley Coffee but it’s a project the owners couldn’t say no to.

 “This is an incredible opportunity,” said Baker. “It’s not every day an entire coffee shop, a restaurant, a giant patio in a prime location just lands in your feet and they ask you, can you help to make it better.”

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So not only are they committed to seeing their business grow, they’re hoping their business will revitalize the area.

“We really think that the best way to solve these issues is by making this corner vibrant again,” Bjorn said to CBS News Bay Area.

The old site of the Creamery is not the only part getting a facelift. These signs of stores closing will come down, the area will be cleaned up and lights will be put up to make this corner of 4th and Townsend more inviting. Baker and Bjorn are determined to make a difference, one cup at a time.

“Coffee is about community,” said Bjorn. “Historically coffee shops have brought people together and this neighborhood needs to be brought together.”

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San Francisco, CA

San Francisco coffee shop broken into before opening doors

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San Francisco coffee shop broken into before opening doors


A new coffee show in San Francisco has yet to open its doors, but it is already dealing with crime concerns.

The owners of Silicon Valley Company said someone broke into the property twice in a matter of days.

“The property has been neglected for the last five years, so we knew we were going to have challenges renovating it,” said Matt Baker, co-founder of Silicon Valley Coffee. “On Sunday, we got here and realized that our back gate had been smashed open and that there were people possibly on-site in one of the back condos.’

Baker and co-founder Vance Bjorn said they knew they would take on a big project revitalizing the space but didn’t expect the business to be broken into twice.

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Christie Smith has the full report in the video above.



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San Francisco, CA

Suspect Arrested For San Francisco Homicide

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Suspect Arrested For San Francisco Homicide


HAYWARD, CA — A Hayward man was arrested by police in San Francisco on suspicion of a fatal shooting in the Tenderloin in October, the department said.

On Oct. 30 just after 6 p.m., a man was shot in the area of Ellis and Jones streets and was later pronounced dead at the hospital.

Investigators identified 22-year-old Michael Javius as the suspect and arrested him on Dec. 12. Search warrants were issued for residences in San Francisco, Hayward and Antioch, police said, and evidence related to the shooting was seized.

Find out what’s happening in San Franciscowith free, real-time updates from Patch.

Javius was booked into jail on suspicion of homicide, conspiracy and being an accessory after the fact.

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Although an arrest has been made, this is an open and active investigation. Anyone with information is asked to contact police at (415) 575-4444 or text a tip to TIP411 and begin the message with SFPD.

Find out what’s happening in San Franciscowith free, real-time updates from Patch.


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To request removal of your name from an arrest report, submit these required items to arrestreports@patch.com.



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