Historic Downtown hotel trades for half its original asking price

The Barclay Hotel, which sold for $21M, had been on the market for 2 years

Los Angeles /
May.May 18, 2018 09:03 AM
Hotel Barclay (Credit: Channone Arif/Flickr)

The 121-year-old Barclay Hotel in Downtown sold for roughly half its original asking price.

The six-floor Beaux Arts hotel at 101 W. 4th Street sold to Downtown-based Golden Hills Properties for $21 million, more than a year after it was listed for $40 million, property records show.

The sale comes out to just under $127,300 per room at the 165-key hotel. The purchase was made with a $22.2 million mortgage from East West Bank.

Golden Hills Properties is owned by Michael Delijani, son of the late L.A. real estate investor Ezat Delijani, and an active investor in his own right. Both had been involved in Downtown politics.

Golden Hills purchased the property through an LLC from which it also acquired a Newport Beach medical center. The firm owns two other Downtown properties — one on either side of South Broadway in Downtown between 6th and 5th streets that it purchased in 2013 and 2015. It also owns a pair of medical offices in Beverly Hills.

The story of the Barclay Hotel is a familiar one in Downtown. Like many turn-of-the-century lodges, the Barclay started off as a regal establishment and declined as Downtown fell out of fashion in the mid-20th century. Designed by L.A. architecture firm Morgan and Walls, it was first called the Van Nuys Hotel and was the first hotel in the city to provide electricity and telephone service to each of its rooms, according to Curbed.

The hotel on the edge of Skid Row was turned into a single-room occupancy establishment at some point during that time and has remained such since. There were around 30 single-resident occupancy tenants living there when it was put on the market, but it’s uncertain how many SRO tenants remain.

The hotel is a city Historical-Cultural Monument, which could complicate any renovation or redevelopment plans.

The hotel could also face stiff competition. More than 10,000 hotel rooms are expected to come online in Los Angeles County over the next few years and many are located in the increasingly trendy Downtown market.


Related Articles

arrow_forward_ios
Renderings of One Beverly Hills and Beny Alagem. (One Beverly Hills, Getty)
Beny Alagem’s $2B Beverly Hills project gets go-ahead
Beny Alagem’s $2B Beverly Hills project gets go-ahead
The San Pedro Fish Market is one of the top-grossing restaurants in the U.S. (Getty, Facebook via San Pedro Fish Market and Restaurant / Photo Illustration by Alison Bushor for The Real Deal)
San Pedro Fish Market plans new “supersize” restaurant
San Pedro Fish Market plans new “supersize” restaurant
The Chateau Marmont (Getty) and protest signs (Unite Here Local 11)
Chateau Marmont workers say iconic West Hollywood hotel misused rescue funds
Chateau Marmont workers say iconic West Hollywood hotel misused rescue funds
(Proper Hotel, Google Maps)
Downtown LA’s Proper Hotel to open in July after years of delays
Downtown LA’s Proper Hotel to open in July after years of delays
Small Business Administration administrator Isabel Guzman (Getty, iStock)
Starved for relief: Restaurants seek $76B, far more than budgeted
Starved for relief: Restaurants seek $76B, far more than budgeted
Goodman CEO Greg Goodman and a rendering of the facility. (Goodman)
Goodman’s massive logistics center will target e-commerce tenants
Goodman’s massive logistics center will target e-commerce tenants
California is waiting to adopt the CDC maskless decision. (Getty)
California still says mask up at office, for now
California still says mask up at office, for now
Larry A. Silverstein with LA's US Bank Tower. (Getty, Silverstein)
Silverstein will pour $60M into US Bank Tower overhaul
Silverstein will pour $60M into US Bank Tower overhaul
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...