Koreatown’s Line Hotel Returns to Lender for $68 Million

The lender of The Line Hotel in Koreatown has bought back the lodging out of foreclosure in a landmark sale for Los Angeles this year.

Corten Real Estate Partners purchased the hotel at 3515 Wilshire Boulevard from RECP Sydell Wilshire for $68 million, Bisnow reported, citing a midyear report from Atlas Hospitality Group. The foreclosure sale marks the largest hotel transaction in Los Angeles County so far this year.

RECP Sydell Wilshire defaulted on a $100 million loan from Corten in February after failing to make a critical payment the previous month. The total amount of debt on the 384-room hotel is about $106 million, according to Bisnow.

“Higher interest rates and continued disconnect between buyer and seller price expectations continue to create downward pressure on hotel sales transactions,” Alan Reay, president of Atlas Hospitality Group, said in Atlas’ report, according to The Mercury News.

Aside from The Line Hotel, the other two priciest hotel sales in California in the first half of the year were also foreclosure sales. Earlier this month, the Oakland Marriott City Center in downtown Oakland was taken back by lender Invesco in a foreclosure proceeding that valued the building at $70.2 million. In May, BrightSpire Capital seized the 541-room Signia by Hilton in downtown San Jose in a foreclosure that valued the property at $80 million.

“These three sales accounted for a total of [nearly $218.2] million of sales volume, which is 15.7 percent of the entire dollar volume through the first six months of 2025,” Reay said, per The Mercury News.

As hoteliers weather a tough hospitality market across the state, some Los Angeles hotel owners are seeking to offload their properties in anticipation of the local minimum wage increase for hospitality workers.

“I’ve never seen so many hotels on the market right now, and none of them are selling,” Mark Beccaria, owner of the Hotel Angeleno, told The Real Deal in an interview. “No one wants to pay anywhere close to what they’re worth.”

Pebblebrook Hotel Trust CEO Jon Bortz echoed a similar sentiment. “We would love to sell [our L.A. hotels],” Bortz told The Wall Street Journal. “But nobody will buy them.”

In the first half of the year, the average per-room purchase price in Southern California was $175,900, a 1.3 percent decline from $178,200 in the same period in 2024.

— Chris Malone Méndez