New York-based Machine Investment Group recently announced the $208 million recapitalization of a hospitality portfolio located in Hollywood. The under-construction luxury lifestyle properties include the Thompson and Tommie branded hotels in addition to event/food and beverage spaces in the Citizen News Building.
The $208 million whole loan recasts the previous senior mortgage held by Calmwater Capital as a $136 million A-note and incorporates a $72 million B-note originated by Machine. The B-note was provided by a joint venture sponsored by affiliates of Machine and Taconic Capital. The package provides new funding for the sponsor, Relevant Group, to complete construction of the two hotels by this summer.
Located at the intersection of North Wilcox and Selma Avenue, the 190-key Thompson Hollywood Hotel and the 212-key Tommie Hollywood hotel will feature a combined 30,000 square feet, including two rooftop bars with unobstructed views of the Hollywood Hills. The Hollywood Citizen News Building will feature an additional 45,000 square feet of dining and event space.
“We were able to move quickly after sourcing this transaction off-market, collaborating with the sponsor and existing lender toward a recapitalization that works well for all parties,” said Eric Rosenthal, managing partner of Machine.
Lisa Brown has more than 30 years of experience in corporate communications and marketing management with organizations including Grubb & Ellis, Marcus & Millichap and NAIOP.
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