"A lender wants to sell the equity interests in the Dream Hollywood hotel, owned by a company connected to Relevant. A foreclosure auction is scheduled for mid-October. The lender, LCP Group, alleges Relevant owes more than $30 million in unpaid debt connected to the 10-story, 178-key hotel at 6417 Selma Avenue. King, for his part, said Relevant is working on a loan recapitalization and extension with the lender."
"King isn't the only owner in a jam. Queensgate Investments defaulted on the debt connected to the Freehand Los Angeles, a hotel-meets-hostel downtown, to the tune of $71 million and too faces foreclosure. The London-based company missed its maturity date for the loan tied to the 226-key hotel at 416 West 8th Street that was once the 13-story, Beaux-Arts-style Commercial Exchange Building."
Several Los Angeles hotels are facing lender actions and potential foreclosures as owners default on large loans. LCP Group seeks to sell equity interests in the Dream Hollywood, alleging Relevant owes over $30 million, with a mid-October foreclosure auction scheduled. Relevant says it is pursuing a loan recapitalization and extension. Queensgate Investments defaulted on about $71 million tied to the Freehand Los Angeles and faces foreclosure risk. Multiple hoteliers are receiving default notices and investor interest in Los Angeles is declining. Contributing factors include Measure ULA (mansion tax), homelessness and crime, reduced tourism, a $30 minimum hotel wage, and high interest rates.
Read at therealdeal.com
Unable to calculate read time
Collection
[
|
...
]