Downtown, Beverly Hills Sites Secure More Than $300 Million in Loans

Downtown, Beverly Hills Sites Secure More Than $300 Million in Loans
The Viceroy L’Ermitage has 116 luxury rooms along with a rooftop pool and other amenities.

Two high-profile Los Angeles properties — Thea at Metropolis downtown and Viceroy L’Ermitage Beverly Hills — have received more than $300 million in first mortgage loans.

Funds managed by New York-based Apollo Global Management Inc., which has an office in Century City, provided the loans.

Thea at Metropolis received a $250 million first mortgage. The recently opened property has 685 luxury apartments and commercial space.

The building was initially expected to house for-sale condominium units. It is part of the larger Metropolis project, which includes the 350-room Hotel Indigo, two luxury condo towers, restaurants and retail space.

Greenland USA developed the project, which is located at 1000 W. 8th St. and has more than 800 condo units.

Three different brokerages have been used to sell the units, starting with Douglas Elliman Real Estate followed by The Agency and Polaris Pacific.

Greystar Worldwide manages Thea.

The loan for the property is a five-year floating rate mortgage that was finalized Nov. 25, according to Apollo Global Management.

To the west, the 116-room Viceroy L’Ermitage Beverly Hills was given a $56.5 million first mortgage.

EOS Investors purchased the hotel earlier this year.

In July, the hotel had a $100 million stalking horse bidder but was headed to auction. The auction was later canceled, and the stalking horse bidder was revealed to be EOS Investors.

Besides the hotel rooms, the L’Ermitage Beverly Hills also has a rooftop pool and event deck, a restaurant and bar, and a spa and lounge.

It is located at 9291 Burton Way, near luxury shopping street Rodeo Drive.

The loan is a five-year floating rate mortgage. Apollo Global Management said the money helped fund the acquisition of the property.

In 2016, the hotel underwent a nearly $37 million renovation that included updates for guest rooms, the lobby, public spaces and amenities.

Earlier this year Apollo Global Management provided Silverstein Properties a $274.9 million loan for its acquisition of the U.S. Bank Tower at 633 W. 5th St.

Singapore-based OUE Ltd. sold the more than 70-story property for $430 million, a deep discount from the $700 million it was expected to fetch when news broke last year that the tower would be sold.

OUE annual reports valued the property at $650 million last year.

U.S. Bank Tower is the first L.A. property for New York-based Silverstein, which owns the World Trade Center.

“This trio of L.A. loans further reinforces Apollo’s faith in the enduring appeal of the West Coast’s major gateway cities,” Scott Weiner, senior partner and global head of commercial real estate debt at Apollo Global Management said in a statement. “While these transactions span a diverse range of property types, each benefits from strong and experienced sponsors and iconic Los Angeles locations.”

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