Stonehill Provides Bridge Loan for Santa Monica’s Georgian Hotel
BLVD Hospitality and ESI Ventures have landed $73.8 million of bridge financing to refinance their historic Georgian Hotel property in Santa Monica, Calif., Commercial Observer can first report.
Stonehill originated the loan for the joint venture’s recapitalization and extensive renovation plans at the 1933-built, 84-key hotel. The JV acquired the hotel in August 2020 for an undisclosed price.
“The attractiveness of the deal was the irreplaceable real estate in Santa Monica and the sophistication of the sponsors,” said Keegan Bisch, a vice president at Stonehill. “These sponsors have excellent reputations for real estate and hotel development and revitalizations.”
Located at 1415 Ocean Avenue, the Georgian touts itself as one of “L.A’.s most iconic hotels.” Since opening in the early 1930s, the hotel has been nicknamed “Santa Monica’s First Lady.”
Atlanta-based Stonehill is off to an active start in early 2022, which involved originating a $58.1 million bridge loan last month for the ASAP International Hotel to acquire the Maui Seaside Hotel in Kahului, Hawaii. The direct hospitality lender, which is affiliated with the Peachtree Hotel Group, also deployed a $30 million financing package for the recapitalization of a national Hyatt hotel portfolio in January.
Bisch said he is optimistic about the hospitality sector with more people expected to travel this year as progress continues against the COVID-19 pandemic.
“With COVID expected to end this year and the sustained economic recovery boosting hotel fundamentals, we believe the lodging sector remains among the best real estate classes for investing,” Bisch said. “Hotel owners are looking for thoughtful options with capital partners that understand the industry’s nuances, particularly considering the impact of the pandemic on hotel operators.”
Officials for BLVD Hospitality and ESI Ventures did not immediately return requests for comment.
Andrew Coen can be reached at firstname.lastname@example.org.