JPM, MRECS Refinance Witkoff’s West Hollywood EDITION With $230M Loan
J.P. Morgan and Mack Real Estate Credit Strategies provided the debt in a transaction arranged by Newmark’s Dustin Stolly and Jordan Roeschlaub, co-heads of the debt and structured finance team, along with Senior Managing Director Nick Scribani and Associate Dan Morin.
“Lenders and investors alike are fighting to deploy their capital in top-tier, leisure-focused lodging assets, which are positioned to capture an outside share of the pent-up travel and local demand,” Stolly told CO.
The 190-key luxury asset — at 9040 Sunset Boulevard — serves as the EDITION hotel brand’s West Coast flagship property.
The West Hollywood EDITION made its debut in 2019. It sits in a prime spot on the border of Beverly Hills and West Hollywood, and was Witkoff Chairman and CEO Steven Witkoff’s first project undertaken in Los Angeles.
The developer has also been making strides in Miami since then. In June, Witkoff — along with Monroe Capital — closed on the $94 million acquisition of a 4.7-acre development site at 700 North Miami Avenue in Downtown Miami. The site was previously lined up to be the long-planned Marriott Marquis Miami Worldcenter Hotel & Expo Center. MRECS also provided a floating-rate loan in that instance, while the same Newmark team arranged the debt.
The West Hollywood EDITION financing is one of MRECS’ largest deals since Kevin Cullinan and Priyanka Garg took the reins at the platform in May, following the exit of chief investment officer Peter Sotoloff.
Early last month, it was reported that Douglas Elliman had sold out the 20 residences within the West Hollywood EDITION, with the pads being snapped up for prices that ranged from more than $4 million to around $25 million.
Prior to the residences selling, Deutsche Bank and South Korean investment bank Mirae Asset Securities (formerly Mirae Asset Daewoo) refinanced both the hotel and the residences with a $300 million loan in May 2019.
A spokesman for MRECS didn’t immediately return a request for comment.
With additional reporting from Mack Burke.
Cathy Cunningham can be reached at email@example.com.
UPDATE: This story has been updated to include J.P. Morgan as a senior lender in the deal.