$2,400,000 Acquisition in San Francisco
Rubicon Mortgage Fund, LLC Finances $2.4M Acquisition of Boutique Hotel for Innovative Living Concept in San Francisco
Loan Amount: $2,400,000
Loan Term: 12 Months
LTC: 50%
Lien Position: 1st Deed of Trust
A Unique Vision Meets a Classic Victorian Mansion
Rubicon Mortgage Fund, LLC recently closed a $2,400,000 acquisition loan for a boutique hotel in San Francisco, unlocking new potential for a historic property. The 16,897-square-foot Victorian building—originally constructed in 1881—is now poised to become a vibrant community hub, thanks to a bold and modern vision from its new owners.
This transaction highlights Rubicon’s strength in providing creative capital solutions, especially when traditional banks say “no.” The borrower, a group of foreign nationals from South Africa, has already built a successful brand centered around flexible living and community-centered hospitality. But despite their proven track record, securing conventional financing in the U.S. was not in their play.
Why Traditional Lenders Passed on the Opportunity
The property was originally operated as a bed and breakfast / short-term rental, but it had not been producing strong income in recent years. Its underperformance discouraged traditional lenders from financing the deal. The building was not being utilized to its full potential, and the financials didn’t meet bank’s criteria.
In addition, the buyers’ foreign national status presented additional hurdles in the eyes of traditional lenders. But at Rubicon, we look beyond conventional formulas. We underwrite based on the strength of the borrower’s overall business model, experience, and the long-term vision for the property.
Reimagining the Boutique Hotel Experience: A New Kind of Hospitality
The buyers behind this acquisition are foreign nationals from South Africa who have already launched a successful hospitality concept that blends flexible living, co-working, and curated local experiences. According to their website, they focus on creating “thoughtfully designed, all-inclusive living spaces that offer exceptional amenities and a connected community for the modern traveler.”
Their model is centered on three pillars:
STAY – Boutique accommodations with a design-forward, home-like atmosphere.
WORK – Shared workspaces and productivity hubs for guests and local professionals.
CONNECT – Local events and immersive experiences that bring people together.
This concept is more than just lodging—it’s about fostering community and connection in beautifully repurposed buildings. Their vision is to open several such locations throughout San Francisco, each offering a dynamic mix of boutique hotel, co-working, and social space.
How Rubicon Made It Happen
Rubicon Mortgage Fund, LLC specializes in private money lending for borrowers. In this case, we saw the upside in funding a boutique hotel acquisition with long-term value, strong sponsorship, and a well-defined business plan.
Our flexibility, speed, and local knowledge enabled us to move quickly where banks stalled. The loan was secured by a 1st Deed of Trust and closed efficiently to meet the borrower’s acquisition deadline.
Conclusion: Investing in San Francisco’s Hospitality Future
San Francisco has always been a magnet for innovation and creativity—and this borrower is breathing new life into its historic architecture. With this acquisition now funded, this former bed and breakfast will soon be transformed into a flagship location for a brand that blends modern design with human connection.
Rubicon Mortgage Fund, LLC is proud to play a role in this next chapter for boutique hospitality in the Bay Area.
Are you an investor or operator looking to acquire a unique boutique hotel, commercial property, or income-producing asset—but struggling with traditional financing?
Please don’t hesitate to contact us at info@rubiconfund.net or call (925) 283-8919.
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