Cottonwood Group, a downtown-based private equity real estate investment firm, has closed a $62 million loan for a prime piece of West Hollywood real estate located on the iconic Sunset Strip.
Positioned on a full city block at the corner of West Hollywood and Beverly Hills and next to the iconic Viper Room, the building at 8850 Sunset Blvd. “makes for optimal development and enhancement opportunities,” according to a statement earlier this month from Cottonwood Group.
Currently serving as a retail strip center, the property is going through re-entitlement and will transition into a mixed-use development, including a re-designed venue and recording studio, multiple eateries, cafes, retail spaces, a five-star hotel, 26 condominiums and eight income-restricted housing units.
“We are pleased to have provided financing for such a historical Hollywood landmark,” said Mark Green, Cottonwood’s chief investment officer, in the statement. “This transaction showcases Cottonwood’s unique ability to furnish creative capital solutions for compelling opportunities that benefit all parties.”
The deal was executed as part of Cottonwood’s strategic platform with BCEG International Investment – US, which was announced in 2020.
“BCEG-US and Cottonwood’s partnership and strategic investment platform remains strong through uncertain market conditions,” said BCEGI-US General Manager Ting Ting Han, in the statment. “Our symbiotic working relationship and considerable lineup of skills and expertise has allowed us to work together to bring these esteemed new projects to life.”
Cottonwood targets U.S. real estate opportunities with a capitalization of up to $1 billion. In addition to its downtown headquarters, Cottonwood also has offices in Boston and New York. The company specializes in generating alpha returns through investments with special opportunity characteristics.
Earlier this year, the real estate investment firm acquired a 636-unit multifamily portfolio located in San Antonio, Texas. The portfolio benefits from a desirable location in San Antonio’s northeast submarket with proximity to some of the city’s major employers, including Amazon.com Inc.