Stonehill grants bridging loan to Georgian hotel in Santa Monica
BLVD Hospitality and WISE companies secured $73.8 million in bridge financing to refinance their history Georgian hotel property in Santa Monica, Calif., Commercial Observer may report first.
stone hill behind the loan for the joint venture recapitalization and extensive renovation plans for the 84-key hotel built in 1933. The JV acquired the hotel in August 2020 for an undisclosed price.
“The appeal of the deal was the irreplaceable real estate in Santa Monica and the sophistication of the sponsors,” said Keegan Bisch, vice-president of Stonehill. “These sponsors have an excellent reputation for real estate and hotel development and revitalization.”
Located at 1415 Ocean Avenue, the Georgian boasts of being one of “LA’s most iconic hotels.” Since its opening in the early 1930s, the hotel has been dubbed “the First Lady of Santa Monica.”
Atlanta-based Stonehill got off to an active start in early 2022, which involved native a $58.1 million bridge loan last month for the International Hotel ASAP to acquire the Maui Beach Hotel in Kahului, Hawaii. The receiving direct lender, which is affiliated with the Peachtree Hotel Groupalso deployd a financing package of $30 million for the recapitalization Hyatt hotel portfolio in January.
Bisch said he was optimistic about the hospitality sector, with more people expected to travel this year as progress continues against the COVID-19 pandemic.
“With the expected end of COVID this year and the sustained economic recovery boosting hospitality fundamentals, we believe the hospitality sector remains among the best real estate classes to invest in,” Bisch said. “Hotel owners are looking for thoughtful options with financial partners who understand the nuances of the industry, especially given the impact of the pandemic on hotel operators.”
BLVD Hospitality and ESI Ventures officials did not immediately respond to requests for comment.
Andrew Coen can be reached at email@example.com.