A lender aims to foreclose on Grant King’s Dream Hollywood hotel.
A UCC foreclosure auction is scheduled for mid-October, according to a notice reviewed by The Real Deal. The LCP Group is seeking to foreclose on the equity interests in the 178-key hotel, which the lender alleges has over $30 million in unpaid debt.
The 10-story hotel at 6417 Selma Avenue is owned by a company connected to the embattled King-helmed Relevant Group. King told TRD that Relevant is working on a loan recapitalization and extension with the lender.
Relevant raised hundreds of millions for the hotel, as TRD reported in March 2023, with some coming via the EB-5 program. It received a $33.3 million loan a month later from LCP.
Relevant lost 6417 Selma Avenue before, but bought it back after King’s personal bankruptcy in 2013. The hotel was completed in 2017.
The company then developed two other hotels: the 212-key Tommie and 190-key Thompson Hollywood hotels, both in 2021. The two are under different names and brands now, after lenders Machine Investment Group and Tachonic Capital acquired the properties at 6516 West Selma Avenue and 1541 Wilcox Avenue through foreclosure in 2023. Recent records revealed the lenders acquired the properties through credit bids; the mezzanine lenders provided a $72 million loan for the two hotels.
In June, the Los Angeles City Council rescinded its approval of another hotel proposed by Relevant, this one an eight-story, 114-room hotel at 6221 Selma Avenue in Hollywood, after a court ruled it would adversely impact air quality in the area.
The equity interest in the Dream Hollywood hotel will be put for sale along with the Tao Restaurant; they will be offered individually and then as a bulk sale.
Matthew Mannion of Mannion Auctions is the auctioneer. The lender declined to comment.
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