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9/18/18
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Dominion Mortgage Corporation has provided an $11.6 mil construction loan for the development of a new, 64-room Hyatt-branded boutique hotel in Hollywood. The development is just a few blocks from the well-known intersection of Hollywood and Vine, and will boast rooftop views of the iconic Hollywood sign.
The borrower, an experienced, Los Angeles-based hotel developer/operator, has already received a “PACE” construction financing bond of $6 mil to develop what will be the first property in the state under a new branding campaign by Hyatt Hotels International. Additional equity for the project has been provided through overseas EB-5 financing.
One obstacle that the Dominion team faced was that the project site has a non-subordinated ground lease, which required some creative loan structuring to overcome. The loan is interest-only with an initial term of 24 months, but offers extensions, if needed. Construction has just begun with completion planned for November of 2019.
Dominion Mortgage Senior Vice President Keith Olson, who oversaw the financing effort on behalf of the sponsor, noted, “The complexities of the borrowing entity coupled with the challenges of facilitating the various financings needed to complete this transaction were all successfully overcome. Every player involved realized that this project is destined to be a huge win for the developer and his team.”
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