Hankey Capital provides $29M bridge loan on Le Méridien in Pasadena

Developer Chateau Group USA recently completed the 234-key hotel

Don Hankey and Le Méridien Pasadena Arcadia hotel (Hankey Investment Company, Marriott)
Don Hankey and Le Méridien Pasadena Arcadia hotel (Hankey Investment Company, Marriott)

Hankey Capital provided a $29 million bridge loan to Chateau Group USA on its newly built Le Méridien Pasadena Arcadia hotel in the San Gabriel Valley.

The 234-key hotel at 130 W. Huntington Drive received its certificate of occupancy last month, according to the Commercial Observer.

The loan and a PACE loan paid off a 2109 construction loan from ACRES Capital and loans from EB-5 investors. PACE-type loans are for energy efficiency upgrades and development deemed green.

Pacifica Hotels is set to manage the Le Méridien Pasadena Arcadia. The property has 14,000 square feet of event space and restaurant space. It’s also located near the Santa Anita racetrack and Arcadia City Hall, according to the Commercial Observer.

Hankey Capital is a subsidiary of Hankey Group. The firm’s mixed real estate portfolio spans Southern California and is valued around $1 billion.

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The firm also has about 1,800 multifamily units under development, according to its website. Hankey Investment Company is the group’s real estate investment wing. As of early 2020, the firm had more new units in the pipeline across L.A. than any other developer.

Hankey Capital specializes in bridge financing and has lent on a variety of properties across L.A., including Nile Niami’s 100,000-square-foot Bel Air spec house, The One.

The firm lent Niami $82.5 million in 2018 and served a notice of default on the property in March.

[CO] — Dennis Lynch