George Smith Partners Arranges $50M for Hotel Conversion
George Smith Partners arranged $50 million in construction financing for the redevelopment of a 258,000-square-foot, 13-story office tower in Los Angeles. The property will be converted into a 129-key Hyatt House and a 272-key Hyatt Place Hotel adjacent to LAX at 5959 West Century Blvd. Completion is planned for 2019.
Sized to 50% of total project cost, the non-recourse, interest-only loan will float at a spread of 425 basis points over one-month LIBOR, and carries two one-year extension options.
George Smith Partners’ Zachary Streit arranged the senior construction financing, on behalf of 5959 LLC, an affiliate of California Real Estate Regional Center, LLC (CaRE).
“There is growing demand in the LAX submarket, and the current hotel stock is largely outdated. As a result, this new dual-branded offering, which will feature a trendy, mid-century urban design, will be of immediate interest to business and leisure travelers,” Streit says.
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