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

TRD 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 Article

arrow_forward_ios
Terreno Realty Chairman & CEO W. Blake Baird

Terreno Realty makes another industrial play in LA

Los Angeles City Planning Commission President Samantha Millman and a rendering of the Flower Market project (credit: Brooks + Scarpa and Twitter)

Development bloom: SoCal Flower Market mixed-use project in DTLA clears hurdle

Downtown Los Angeles (credit: Jeff Cleary and Laurie Avocado)

Rezoning Downtown — Skid Row included — must include more affordable housing, advocates say

Lizard Capital CEO Bingyi Huang and a rendering of the Spring Street Hotel

Appeal settled, Lizard Capital’s jagged-look DTLA hotel project has start date

Rexford Industrial Realty co-CEOs Howard Schwimmer and Michael S. Frankel

Rexford signs film and TV props supplier to giant warehouse lease Downtown

The Skid Row City Limits mural

LA wants to rezone Skid Row to allow 100K units of new housing

A rendering of Fig and 8th

Mitsui Fudosan secures final approval for 41-story DTLA tower

Alamo Drafthouse founder Tim League and the Bloc

Remember the Alamo Drafthouse project at the Bloc? It’s finally happening

arrow_forward_ios