Beverly Hills Hotel Receives Yet Another Loan Extension
The deal is at least the third time the debt’s maturity date has been pushed since its origination.
By Nick Trombola October 8, 2024 4:36 pm
reprints
The shifting financial saga of a hotel in Beverly Hills has entered its next chapter.
Hospitality group Sixty Collective has landed yet another extension on the $38 million loan tied to Sixty Beverly Hills, a 118-key hotel at 9360 Wilshire Boulevard, according to a recent Morningstar report.
Natixis provided the loan in mid-2017 with an original maturity date of August 2022, but it was sent to special servicing during the pandemic, per Morningstar data. Although the loan received a forbearance and its maturity was pushed to August 2023, it returned to special servicing that same month after its owners couldn’t find the funds to pay.
Sixty Collective, run by brothers Jason, Lawrence (Larry) and Michael Pomeranc, negotiated another extension to February 2024, but was once again unable to pay. The loan was granted yet another 120-day forbearance, and in August of this year the borrower claimed it was under contract with another lender to refinance the debt, per Morningstar.
That deal has apparently collapsed, yet, remarkably, another extension term was granted, this time to an “ultimate” maturity of August 2026, per Morningstar.
“While full terms of the extension are not known, the servicer’s commentary notes that there is a $3 million paydown of the balance, an increase in the interest rate and full recourse liability of 10 percent of the principal balance to the guarantor,” Morningstar’s report said.
Representatives for Sixty Collective and Natixis did not immediately respond to a request for comment.
The Pomeranc brothers, who also own a hotel in Manhattan, made headlines in early 2023 for their sale of the 97-room Sixty SoHo in New York City for $109 million. The deal set a post-pandemic record for hotel sales, Commercial Observer wrote at the time.
Nick Trombola can be reached at ntrombola@commercialobserver.com.
