The money came from Aareal Capital Corp. and Goldman Sachs Group Inc.
Aareal Capital provides the top portion of the $ 340 million loan, while Goldman Sachs Broad Street Real Estate Credit Partners III provides $ 160 million in mezzanine funding.
The loans are for three years with two renewal options for one year each, for a total of five years. They replace the existing hotel loan.
“This strong commitment from respected organizations marks a milestone for our project and further reinforces our belief in a bright future for the hospitality industry and global gateway cities,” said Jonathan Goldstein, CEO and co-founder of Cain International. statement. “We are delighted to be working with an exceptional investor base and look forward to further developing our relationship with Goldman Sachs and Aareal Capital as the One Beverly Hills master plan is implemented.”
Alagem Capital Group, led by Beni Alagem, is the Waldorf Astoria Beverly Hills developer and longtime owner of Beverly Hilton. They partnered in 2018 and then acquired a development site at 9900 Wilshire.
The partners plan to create a large-scale development of One Beverly Hills. Upon completion, the property will be a 17.5-acre mixed-use project that will include the Waldorf Astoria Beverly Hills and the Beverly Hilton.
The Beverly Hilton opened its doors in 1955. It has 566 newly renovated rooms and its event space is used to host events such as the Golden Globes. As part of the development, the hotel will be modernized.
The Waldorf Astoria Beverly Hills has 170 rooms and suites, spa and meeting facilities.
One Beverly Hills will also have three new buildings. Two of them will be condominium towers, and the third will include 42 luxury hotel rooms and residences.
The project will also include 8 acres of botanical gardens.
Construction on One Beverly Hills is expected to be completed in 2026. It was approved by the Beverly Hills City Council in June.
Alagem Capital and Cain International agreed to pay the city $ 100 million for not including affordable housing in the project. It will be paid out over the next eight years.
Hotels seem to be making a comeback. After a slow 2020, hotel sales hit record highs in the first half of 2021, surpassing pre-pandemic levels.
Los Angeles County hotel sales grew 188% in the first half of the year compared to the first half of 2020, according to a report by the Atlas Hospitality Group.
At the same time, the cost rose sharply by 556%, while the average selling price per room increased by 5%.
This year also saw the highest number of individual sales and the highest dollar-denominated transaction volume.
Condominiums are also seeing a boom in sales, attributed by experts to a variety of factors, including non-local buyers looking to purchase real estate in Los Angeles.
According to Redfin Corp., in June alone, the number of units sold increased 88% year on year, while the average selling price rose 22.5% year over year.
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