The property has a 200-room hotel and roughly 14,000 square feet of retail space.
CBRE Group Inc.’s Mark Owens and Olga Lepow and Westbrook Partners arranged the financing.
“This transaction reinforces the strong interest in hospitality and mixed-use properties across the country and particularly in Los Angeles,” Owens, who is the co-head of debt and structured finance for CBRE’s hotels vertical, said in a statement. “With over $1.6 billion of hospitality financing closings by our team in the U.S. recently, it’s clear that the search for yield and appeal of hospitality real estate go together.”
A renewed interest in hospitality can be seen by the increase in hotel sales. In the first six months of the year, the number of hotels sold in the county increased 188% compared to the same time period the year before, and the value of those deals increased a whopping 556% by dollar volume, according to data from Irvine-based Atlas Hospitality Group.
Atlas found that deals outpaced 2019 sales as well. In the first half of 2019, 22 hotels sold in the county for $179.8 million. In 2020, 46 hotels traded hand for $846.2 million.
L.A. County is outpacing the state, which also set records.
This year saw the highest number of individual hotel sales on record and the highest dollar volume of transactions on record, up 41.7% and 22.5%, respectively, from previous records.
“Investors have shown a strong interest in extended-stay hotels with this segment reporting some of the highest occupancies through the Covid-19 pandemic. Furthermore, the hotel offers the newest product in the market, which ultimately made this opportunity highly desirable,” Lepow said in a statement.
