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.

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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.

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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."

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Palihouse is a long-term stay hotel with studio, one- andtwo-bedroom guest suites as well as loft-style residences.

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Although there has been much news about the hotel renaissance inDowntown Los Angeles, fueled mainly by the WilshireGrand project, West Hollywood is also attracting hoteldevelopers. Earlier this year, GlobeSt.com reported that theJames Hotel brand is building its first West Coast hotel in WestHollywood on Sunset Blvd. The CIM Group andDenihan Hospitality Group are behind the project,which will mark the first ground-up hotel built in the area in morethan 30 years. The 10-story property will have 286 guestrooms,retail space and rooftop bars.

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Kelsi Maree Borland

Kelsi Maree Borland is a freelance journalist and magazine writer based in Los Angeles, California. For more than 5 years, she has extensively reported on the commercial real estate industry, covering major deals across all commercial asset classes, investment strategy and capital markets trends, market commentary, economic trends and new technologies disrupting and revolutionizing the industry. Her work appears daily on GlobeSt.com and regularly in Real Estate Forum Magazine. As a magazine writer, she covers lifestyle and travel trends. Her work has appeared in Angeleno, Los Angeles Magazine, Travel and Leisure and more.