SAN JOSE — A big San Jose hotel is poised to land by the end of April the funding it needs to avoid a loan foreclosure, a revamp that is in view even as the hotel enjoys a major financial upswing.

The Signia by Hilton San Jose, a landmark lodging tower at 170 South Market Street, awaits the resolution of a Santa Clara County court case and lawsuit that could determine the hotel’s fate and future ownership.

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The hotel has landed loan commitments in the form of two “term sheets” that detail the plans for new lenders to refinance the hotel’s funding, according to documents on file with the Santa Clara County Superior Court.

Sam Hirbod, the principal executive of the hotel’s ownership group, sketched out in a court filing the hotel’s prospects for a completed refinancing. The 541-room Signia by Hilton is San Jose’s largest hotel.

“Two new lenders are very eager to take over financing of the hotel,” Hirbod stated in papers filed with the Santa Clara County court. “The lenders are expecting to close refinancing in mid-April.”

Bridge Investment Group and Nexpoint have agreed to provide the Signia by Hilton hotel property with a refinancing of the hotel’s mortgage.

“We look forward to working with you on this transaction,” Jeehae Lee, manager of Bridge Debt Strategies Fund, wrote in a March 10 letter detailing Bridge’s term sheet.

The Bridge and Nexpoint loans would pay off the existing property mortgage held by Brightspire Investment Group.

“BrightSpire will be paid 100% of the money it is due under the loan agreements,” Hirbod stated in the court filing on March 13.

For several months, Brightspire has been attempting to foreclose on a small portion of a $136 million loan that it provided to the hotel property, according to court and real estate public documents.

Brightspire aims to seize ownership of the hotel through the foreclosure proceedings, court documents state.

In 2018, Hirbod’s ownership group paid $223.5 million for what was at that time an 805-room hotel with two towers. That price worked out to about $278,000 a room.

Hirbod stated in the court filings that he has invested $170 million into the hotel.

This consists of a $90 million down payment to buy the hotel in 2018, $26 million in interest payments to the lender while the hotel was closed during the coronavirus-linked business shutdowns and $54 million to renovate the hotel in 2023 and 2024 as the lodging was recovering from the virus-spawned lockdowns.

In 2023, Hirbod took steps to further stabilize the hotel’s finances through the sale of the 264-room southern tower of the property.

Throckmorton Partners paid $73.1 million to buy the south tower and convert it into housing for San Jose State University students. The southern tower is now known as Spartan Village on the Paseo.

Hirbod used the $73.1 million to pay down the amount of the Brightspire loan.

The Signia by Hilton is now riding a wave of increased bookings for conventions, events and guests, according to Hirbod, who added he was able to nurse the hotel back to health following the coronavirus events.

“The hotel is thriving,” Hirbod stated in the filing.

The latest appraised value of the Signia by Hilton is $240 million, according to an October 2024 appraisal of the property. That means the hotel is now worth around $443,600 a room. The estimated value also greatly exceeds the amount of the Brightspire loan.

“While so many business owners in San Jose walked away from their businesses during COVID — leaving their buildings hollow shells and boarded up storefronts on the streets of San Jose — I doubled down during COVID,” Hirbod stated in the court filing.

Hirbod believes his efforts have fueled a turnaround for the hotel.

“l knew that the hotel would emerge from COVID stronger than ever,” Hirbod stated in the court filing. “In the process, I greatly improved the value and stature of this iconic city of San Jose landmark.”