Witkoff gets $228M refi for West Hollywood Edition hotel
Mack Real Estate, J.P. Morgan provide loan on 190-key hotel, which faced potential foreclosure in July
The Witkoff Group has secured a new line of financing for its West Hollywood Edition hotel.
Steve Witkoff’s firm scored a $228 million refinancing from Mack Real Estate Credit Partners on the 190-key hotel at 9040 Sunset Boulevard, according to Newmark’s Jordy Roeschlaub and Dustin Stolly, who worked on the deal.
Terms of the deal were not disclosed. Alex Witkoff, head of development at the Witkoff Group, declined to comment, but sources told The Real Deal that J.P. Morgan also participated in the financing.
The new loan comes a couple of months after the hotel was being marketed for auction through a UCC foreclosure by an investment vehicle for billionaire brothers Simon and David Reuben on behalf of the brothers and Brentwood-based Ascendant Capital.
Witkoff bought the property from Marriott for $42 million in 2014, records show. In 2019, the developer scored a $260 million construction loan on the property, which also includes 20 luxury residential units, from Cornerstone Real Estate Advisers.
Hotel investment lending has rebounded this year, after the pandemic halted debt and equity markets.
“Lenders and investors alike are fighting to deploy their capital in top-tier, leisure-focused lodging assets,” Newmark’s Stolly said in a statement.