Transaction Overview
George Smith Partners arranged a life company portfolio loan for a boutique waterfront Los Angeles hotel. The fee position is leased from the County of Los Angeles with 49 years remaining. The 10-year fixed rate non-recourse loan features: (1) 5,4,3,2,1 prepayment during years 6-10 of the loan term; (2) No cash management; (3) Non-recourse carve-outs limited to an entity; (4) Interest Only for the first two years of the term. The Sponsors have owned the property for over 15 years and performed a major renovation in 2010 which included new construction doubling the room count. The hotel features a 200 seat indoor/outdoor, well-regarded restaurant and bar with above average F&B income. Amenities include: valet parking, pool and hot tub, ocean views from 50% of the rooms, fitness facility and meeting rooms. Although the hotel is not flagged, it benefits from a major chain style reservation system run by the sponsors, who self-manage this hotel along with 25 other well located hotels.
