AECOM Capital and Combined Properties secured a $505 million loan package on its just completed boutique hotel and condo complex in West Hollywood.
The joint venture opened the Pendry West Hollywood last month; it spans a block on the corner of Sunset Boulevard and North Olive Drive.
Credit Suisse provided a $350 million senior loan and a pair of unnamed private equity funds contributed another $165 million in mezzanine debt, according to Commercial Observer. The loans, brokered by Eastdil Secured, retire a $205 million construction loan Bank OZK provided.
The complex includes a 149-key hotel along Sunset Boulevard and a 40-unit condo managed by Montage Hotels & Resorts. Hotel guests and residents have access to amenities including a rooftop pool and bar, screening room, bowling alley, spa, and gym. There is also a music venue and seven restaurants run by Wolfgang Puck’s group.
Lenders have tightened their standards since the pandemic, which has delayed projects and driven up costs across the city. Relevant Group recently had to extend a construction loan and take out a $72 million “rescue” mezzanine loan to complete work on two of its Hollywood hotel projects.
AECOM meanwhile is moving ahead with a 536-unit residential tower in Downtown Los Angeles. The project is a joint venture with Mack Real Estate Development. The JV presented its design for the complex to the city last summer.
[CO] — Dennis Lynch