In May, HFF announced the sale of and acquisition financing for Hotel MdR – a DoubleTree by Hilton Hotel, a 283-room, full-service hotel located in West Los Angeles within the Marina del Rey submarket.
The HFF team arranged the sale on behalf of Lubert-Adler, Channel West Group and Arris Investments to U.K.-based London & Regional Properties (L+R). This is the first hotel acquisition in the United States for L+R, which has a long-standing relationship with HFF’s London office.
Additionally, the HFF team worked on behalf of L+R to place the five-year, floating-rate loan with a Germany-based lender.
Hotel MdR was extensively renovated and repositioned as a soft-branded DoubleTree Hotel in 2014. The hotel features an outdoor heated pool and patio, state-of-the-art fitness facility, 24/7-business center, market, energy room with ping-pong table, 5,429 square feet of indoor/outdoor event space and Barbianca Local Kitchen restaurant. Hotel MdR occupies a premier location at 13480 Maxella Avenue in the heart of Silicon Beach, the third largest technology hub in the world.
‘Hotel MdR is a uniquely located asset that derives significant demand from its surrounding technology hub. It will continue to benefit from continued demand growth and very little new competitive supply.’
The hotel is proximate to Playa Vista, Santa Monica and Venice, which are home to some of the world’s top TAMI (technology, advertising, media and information) companies, including Google, YouTube, Sony, Facebook and IMAX. Additionally, the hotel is located just minutes from vibrant West Los Angeles submarkets, including Santa Monica, Venice and Culver City as well as Los Angeles International Airport.
The HFF investment advisory team that arranged the transaction consisted of managing directors Tony Malk and Scott Hall and real estate analyst Aaron Lapping.
The HFF debt placement team representing the borrower included director Brad Greenway in HFF’s London office along with executive managing director Kevin MacKenzie and director Matthew Stewart in HFF’s Los Angeles office.
“HFF’s deep knowledge and relationships in the U.S. hotel market allowed us to strategically target a mutually beneficial transaction for both buyer and seller,” Malk said. “This transaction demonstrates HFF’s cross-border capabilities as well as the continued desire of global capital sources to acquire well-located, quality hotels in strategic markets.”
“Hotel MdR is a uniquely located asset that derives significant demand from its surrounding technology hub,” Hall added. “It will continue to benefit from continued demand growth and very little new competitive supply.”
“This transaction exemplifies the strength of the HFF platform since HFF was able to advise on all components of the transaction while successfully importing capital from both the U.K. and Germany,” Greenway said.