Blackstone is tapping the commercial mortgage bond market to refinance yet another trophy property, the Hotel del Coronado in San Diego.
The private equity group initially acquired a 60% interest in the 130-year-old resort in 2011 and later acquired the full interest in late 2015 for approximately $1 billion. Debt on the property has been securitized several times, most recently in two 2013 vintage transactions that were subsequently refinanced early in 2016. Blackstone recently obtained $712 million in new debt, using the proceeds to pay off the $703 million of debt it took out last year and pay closing costs. The private equity firm also contributed $586,981 in cash equity to close, according to DBRS.