Klein snags partner for Sunset Tower Hotel, plans renovation
Hotelier Jeff Klein has brought on Access Industries Inc., billionaire Len Blavatnik’s holding company, as his partner in the Sunset Tower Hotel.
The $100 million deal closed in May — roughly two months after Klein unexpectedly exercised his right of first offer to buy out the 80 percent stake belonging to his former partner, an entity connected to Thai billionaire Thosapong Jaruthavee.
As part of the Access deal, sources said Klein increased his 20 percent stake in the property to closer to 50 percent. Klein declined to comment.
The partners will keep the hotel open during their planned renovation of the 81 guest rooms, terrace and pool this fall.
The Art Deco structure was designed by Leland Bryant in 1929 as a luxury apartment hotel. It was home to such Hollywood legends as Marilyn Monroe, Clark Gable and Joan Crawford.
Atlas, Square Mile say goodbye
Atlas Capital and Square Mile Capital Management have agreed to sell an estimated one-third stake in their trophy retail and office complex the Row in Downtown Los Angeles to an unidentified new partner, according to sources close to the deal.
The transaction is said to value the property at more than $700 million.
Atlas and Square Mile partnered with USAA Real Estate Co. to purchase the creative reuse project as well as several separate properties for $357.4 million in 2014 from real estate investment trust EVOQ Properties.
The Row, located in the Arts District, will include 1.3 million square feet of office space and 200,000 square feet of retail.
The Arts District has become one of the hottest neighborhoods for development in Los Angeles. The area has historically been home to a number of industrial facilities, but it’s being transformed with new lofts and hip boutiques. The Row, which occupies a 30-acre site, is one of the most expansive projects.
Colony and Rising link up
Colony NorthStar, founded by President Trump’s inaugural committee chair, Tom Barrack, is the equity partner behind Rising Realty Partners’ buy of One California Plaza in Downtown Los Angeles.
When Rising entered contract in March to buy the 42-story, 1 million-square-foot building for $465 million from Beacon Capital Partners, it was unclear who was backing the deal. But sources told The Real Deal that Colony agreed to put up the bulk of the money for the purchase of the tower. Eastdil Secured is brokering the transaction.
Beacon paid $144.6 million for the property in 2013. It’s roughly 90 percent leased with tenants, including Skadden Arps Slate Meagher & Flom and Bank of the West.
At $465 million, the per-square-foot price of $465 is Downtown’s second priciest after the $486-per-foot acquisition of Chase Plaza by an L.A. investment group last year.