A mystery buyer has apparently agreed to buy $725 million in debt on two of San Francisco’s largest hotels, reported the San Francisco Business Times. The 1,921-key Hilton San Francisco Union Square and 1,024-key Parc 55 San Francisco have been under court-appointed receivership since the fall of 2023, after owner Park Hotels & Resorts handed back the keys.

Eastdil Secured began marketing the debt on the two connected properties this past July. At that time, the two properties were appraised at roughly $554 million by Kroll Bond Rating Agency, a drop of more than $1 billion from their appraised value when the debt was originated.

The Business Times reported that the terms of the sale were still under discussion and the deal has not been finalized. The receiver is under a March 31 deadline to complete the deal or the debt will go back to lender JPMorgan for foreclosure.

JLL has arranged the recapitalization of a $725 million, 20-asset seniors housing portfolio spanning the Sunbelt, Northeast and Midwest markets.

Working on behalf of Chicago Pacific Founders and Grace Management, Inc., JLL facilitated the sale of the portfolio to Ventas in an all-cash transaction. The properties were previously owned in CPF Living Fund I. Grace Management will continue to manage all 20 communities. The properties are located in Alabama, Arizona, Florida, Illinois, Kansas, Maine, Michigan, Nevada, New York, Ohio, Oklahoma, South Carolina, Tennessee and Texas.

JLL’s Seniors Housing Capital Markets team representing the seller was led by Senior Managing Directors Jay Wagner and Rick Swartz, Director Jim Dooley and Analyst Sean Kirk. Representing the seller from JLL’s M&A team, Jones Lang LaSalle Securities, LLC, was Senior Managing Director Ted Flagg. “As one of the largest seniors housing transactions closed year-to-date, it is a meaningful indicator that appetite for scaled seniors housing portfolios is back,” said Wagner.