LOS ANGELES—Beverly Pacific LLC has secured$15-million is first mortgage financing thePalihouse in West Hollywood, a 37-roomboutique hotel. The borrower will use a portion ofthe funds to renovate the hotel, including guest rooms, the lobbyand common areas.

Our client closed on the asset very quickly, off market and allcash," Jordan Ray, managing director ofMission Capital's debt and equity finance group,"tells GlobeSt.com. Ray secured thefinancing on behalf of the borrower along with MissionCapital associate director StevenBuchwald and directorGregg Applefield. "The business plan wasalways to secure the appropriate debt," he adds. The loan equatesto $405,000 per room. Beverly Pacific also has plans to build arooftop lounge and bar on the hotel rooftop.

The terms of the loan are not disclosed, however, Ray could saythat Mission Capital was able to secure a low interest rate. "Itwas one of the lowest spreads we have seen for this asset class -due to the strength of the asset and sponsor," he says. "The goalwas to find the best priced moderate leverage in the market and weachieved that as well as helped to start a new banking relationshipthat can benefit both sides."