Silver Creek Development Salvages Distressed Sunset Strip Project With $71M Loan
The developer had reportedly defaulted on nearly $70 million in debt tied to the mixed-use project earlier this year
By Nick Trombola July 9, 2025 4:26 pm
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Silver Creek Development has saved its ultra-luxe project on Southern California’s Sunset Strip, just a few months after defaulting on previous loans tied to the development.
The Scottsdale, Ariz.-based developer and investment firm landed a $71 million loan from Centennial Bank and Crestline Investors toward 8550 Sunset, a residential, hotel and commercial project named for its future address. The loan refinances nearly $70 million in debt provided by the Cottonwood Group in 2022, following Silver Creek’s 2018 purchase of the property (which includes the infamous Viper Room bar and music venue).
Silver Creek’s plans for the 11-story, roughly 366,000-square-foot project were narrowly approved by the West Hollywood City Council in a contentious 3-2 vote last summer, with certain council members and neighborhood residents concerned about the size and scope.
Yet Silver Creek defaulted on the debt tied to the property earlier this year, according to reports at the time. A foreclosure sale was slated for June 17, WeHoOnline first reported, though Silver Creek apparently managed to keep its project alive with the new funding from Centennial and Crestline.
Newmark’s Jonathan Firestone and Blake Thompson arranged the financing. A representative for Silver Creek declined to comment, and representatives for the lenders did not immediately respond to requests for comment about the former distress.
Silver Creek’s plans for the project had included a 90-key, five-star hotel; 78 studio, one-, two- and three-bedroom apartments; and about 28,000 square feet of commercial space, as well as 6,748 square feet of replacement space for the Viper Room. It wasn’t immediately clear if those plans were altered in the wake of the distress and refinancing, though “further details on the project’s offerings” will be released soon, per Newmark. Vertical construction on the project is expected to begin in October 2026 and finish by June 2029.
Nick Trombola can be reached at ntrombola@commercialobserver.com.
