UPDATED, July 19, 2022, 2:39 p.m.: Just months after revealing a plan to redevelop The Doors’ beloved Morrison Hotel in Downtown L.A., Relevant Group wants a joint venture partner to invest in the project, The Real Deal has learned.
Relevant Group is selling a stake in the 111-unit building, according to Relevant Group’s managing partner, Grant King, and marketing materials obtained by TRD. The company is in discussions with “several groups and hotel brands,” according to King, though he declined to name them specifically.
Known for appearing on the cover of The Doors’ 1969 album “Morrison Hotel,” the property was built in 1914 and was later converted into a single-room occupancy building.
Relevant started working on redevelopment plans about six years ago, according to King. It then bought several parcels at the site for more than $40 million. Earlier this year, the company revealed plans to build a 444-key hotel with 136 adjacent residential units on the site, located at 1246 South Hope Street.
The firm aims to keep a 50 percent stake in the hotel, if a joint venture deal goes through.
To make up for removing the single-room occupancy portion — typically housing reserved for low-income individuals — Relevant plans to build a 149-unit supportive housing project.
For years, Relevant Group had focused its efforts on Hollywood, building out a mini empire of hotels between Sunset and Hollywood boulevards. On those projects, Relevant relied on EB-5 financing — a visa program that allowed investors to obtain a green card if they met certain thresholds. However, after Congress stalled the program, the firm has sought other sources of financing such as mezzanine loans.
Over the last nine months, the company has been on a planning spree in Downtown L.A. At 121 West 3rd Street, the firm plans to build a 331-unit apartment building to replace a parking lot.
On Olive Street, Relevant has also filed plans to build a 19-story building with 329 rental units.