Sunset Strip Hotel Lands $ 230 million Refinancing

Sunset Strip Hotel Lands $ 230 million  Refinancing

Editions restaurant, Ardor, reopened in June.

A hotel on the iconic Sunset Strip has received a $ 230 million loan to refinance.
JP Morgan and Mack Real Estate Credit Strategies delivered the money to Edition at 9040 Sunset Blvd.

Newmark Group Inc.’s Dustin Stolly, Jordan Roeschlaub, Nick Scribani and associate Dan Morin arranged the financing.
“Lenders and investors are struggling to invest their capital in leisure-focused lodging assets that are capable of capturing an oversized share of pent-up travel and local demand,” Stolly said in a statement.

The hotel was developed in 2019 by Witkoff Group, and the Edition brand is owned by Marriott International Inc.
The property consists of 190 rooms – of which 48 suites and two penthouses plus 20 luxury homes – event rooms, a lobby lounge, a rooftop pool, basement club, restaurant and spa. The West Hollywood Outpost is Editions’ flagship property on the West Coast.

It was previously financed in 2019 with a $ 300 million loan from Deutsche Bank and Mirae Asset Securities Inc. Newmark also secured this loan.
In June, the property reopened Ardor, a restaurant run by Michelin-starred chef John Fraser. The restaurant had opened in 2019, but closed for more than a year during the pandemic. And in July, the 6,200-square-foot spa reopened.

The refinancing follows last month’s news that the property’s 20 homes were sold. The units ranged from $ 5 million to $ 20 million.
Real estate agency Douglas Elliman had the listing for the homes. Condo sales have been strong this year.

In June, the number of condominiums sold in Los Angeles County rose 88% year-over-year to 1,941, and the average selling price of apartments rose 22.5% year-on-year to $ 625,000, according to data from Redfin Corp.

Big sales included Pendry Residences West Hollywood, where a unit fetched more than $ 4,800 square feet, a record. And “Friends” star Matthew Perry’s penthouse in Century City sold for $ 21.6 million.

The recent refinancing of the issue is not the only high-dollar loan completed in recent months.
A few weeks ago, it was announced that Beverly Hills-based Alagem Capital Group and London-based Cain International received a $ 500 million loan to refinance Beverly Hilton and Waldorf Astoria Beverly Hills. Both hotels are part of the $ 2 billion One Beverly Hills development.

The loan was granted by Aareal Capital Corp. and Goldman Sachs Group Inc.
Aareal Capital is providing the senior portion of the $ 340 million loan, and Goldman Sachs is providing $ 160 million in mezzanine financing.

When completed, One Beverly Hills will be a 17.5-acre mixed-use project. It will have three new buildings: two will be condominium towers, and the third will have 42 luxury hotels and homes. It is expected to be completed in 2026.

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