LOS ANGELES—Those who follow @GlobeStcom on Twitter and @GlobeStLIVE may have seen a post teasing the announcement, but GlobeSt.com has learned that a senior $52.74-million construction loan has been placed for a mid and luxury dual-branded high rise hotel. The 332-room hotel is located in “a primary California” market.
While GlobeSt.com did learn that locally based George Smith Partners placed the loan, the firm tells GlobeSt.com that due to confidentiality, they cannot speak further on the deal at this time or provide further information.
The firm does say that the hotel will consist of 188 luxury rooms and 148 mid-level rooms and had a floating over LIBOR with a 5.35% floor. The 51.5% of cost loan carries a 3.5-year term allowing time for construction and stabilization prior to the need for options.
The challenge, according to the firm, was that the project was entitled and construction drawings had been completed prior to the 2008 recession. Advisors included Malcolm Davies, Kyle Henrickson and Murtuza Razavi.
Davies previously told GlobeSt.com that “we are currently at a point of convergence in the market where construction lenders are now just as bullish as developers. This convergence, as well as the market's positive economic outlook, is driving the availability of capital for developments in Los Angeles and Southern California. As a result, I expect the further loosening of leverage ratios, liquidity and net worth standards, along with the availability of more non- and limited-recourse construction loans.”
We will update this story when the firm is able to discuss further.
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Natalie Dolce
Natalie Dolce, editor-in-chief of GlobeSt.com, is responsible for working with editorial staff, freelancers and senior management to help plan the overarching vision that encompasses GlobeSt.com, including short-term and long-term goals for the website, how content integrates through the company’s other product lines and the overall quality of content. Previously she served as national executive editor and editor of the West Coast region for GlobeSt.com and Real Estate Forum, and was responsible for coverage of news and information pertaining to that vital real estate region. Prior to moving out to the Southern California office, she was Northeast bureau chief, covering New York City for GlobeSt.com. Her background includes a stint at InStyle Magazine, and as managing editor with New York Press, an alternative weekly New York City paper. In her career, she has also covered a variety of beats for M magazine, Arthur Frommer's Budget Travel, FashionLedge.com, and Co-Ed magazine. Dolce has also freelanced for a number of publications, including MSNBC.com and Museums New York magazine.
