$5.5M Credit Union Refinance of a 58-Room San Francisco Hotel

The prior mortgage on 1500 Sutter Street carried a maturity date of February 17, 2026, written into a 2016 loan modification. On May 7, 2026, Redwood Credit Union recorded a $5,500,000 deed of trust refinancing the property, resolving a maturity that had come due earlier in the spring. The new loan is written on a 121 month term with a June 1, 2036 due date, per the recorded instrument in San Francisco County.

The collateral is the Hotel Majestic, a five story, 58 room hotel that bills itself as the oldest continually operating hotel in San Francisco. The hotel's own history dates the Edwardian building to 1902, with a fifth floor added in 1965; county records list a 1905 build year, and that conflict is reported as recorded rather than resolved. The property runs a restaurant and a bar on site, Cafe Majestic and the Butterfly Lounge, and current travel listings show it open and taking reservations.

The owner, 1500 Majestic LLC, is a California limited liability company formed January 24, 2011, and it bought the hotel that February for $5,150,000. Bank of Guam recorded a $2,723,000 purchase money deed of trust a week after the sale and stayed on the property for fifteen years: a $4,700,000 refinance in 2013, the 2016 modification that brought the recorded balance to $5,681,218 and set the February 2026 maturity, and a small $258,708 note in 2020. The Redwood Credit Union recording is flagged as a refinance in county data and replaces that long running position.

The fuller debt history runs 13 instruments across nine lenders back to 1997, and it peaked well above today's balance. Pacific Western Bank recorded an $8,000,000 deed of trust against the hotel in 2006, following Cathay Bank at $4,000,000 in 2004 and a series of MKA real estate fund loans in 2005 and 2006. A $5,700,000 mortgage recorded in 1997 opened the chain. Today's $5,500,000 loan sits below the level the property carried twenty years ago.

Redwood Credit Union is a Northern California credit union whose commercial lending page offers purchase, renovation, and refinance loans on California properties with amortization up to 30 years, and whose membership footprint includes San Francisco County. This is its first closing tracked on LoanList. Within San Francisco's tracked record the loan ranks fifth of 26 closings, and it is one of two tracked hospitality financings in the city this year, alongside a $2,960,000 loan from State Bank of India recorded in March.

For hotel owners facing a maturity, the sequence here is worth reading closely. The public record shows the prior note due in February and the replacement loan recording in May, and it shows a depository lender, not a debt fund, providing the takeout on a hospitality asset under $10,000,000. Owners of smaller hotels and inns weighing their refinance options can point to at least one recorded example this spring of a credit union writing ten year hotel paper in San Francisco.