Loan for Pomerancs’ Sixty Beverly Hills Goes Back To Special Servicing
By Greg Cornfield August 24, 2023 5:50 pm
reprints
A $40 million loan behind the Sixty Beverly Hills hotel returned to special servicing this month, according to DBRS Morningstar, which tracks the loan as part of a larger CMBS package. Bisnow first reported the change in the five-year, interest-only financing.
Sixty Collective — run by brothers Jason, Lawrence and Michael Pomeranc — owns the 118-room, eight-story property, which features a restaurant by Umbrella Hospitality Group, a wine shop, a coffee bar, and a rooftop pool and bar at 9360 Wilshire Boulevard.
Natixis provided the loan for Sixty Beverly Hills in August 2017 at 4.8 percent, records show. During the pandemic, the loan went to special servicing but was given forbearance and its maturity date was extended to this month. The loan’s maturity is now set at February 2024, suggesting the borrower used another extension, Morningstar reported.
“The hotel’s 2022 net cash flow has recovered from the depths of 2020 but was still 23 percent short of issuance underwriting,” the report read.
Thanks to rising interest rates and increasing economic uncertainty, hotel investment sales in Los Angeles County declined nearly 53 percent in the first half of 2023 compared to the same time last year, Bisnow reported. Only one hotel transaction over $5 million closed in the city of Los Angeles in the second quarter after the city’s new tax on transactions over $5 million went into effect.
Gregory Cornfield can be reached at gcornfield@commercialobserver.com.
