The LCP Group L.P. (LCP), a vertically-integrated, private real estate investment firm specializing in hospitality investing and lending, in a joint venture with Safanad, a global holding company investing in platforms across real estate, education, healthcare and digital infrastructure, has provided a $33.3-million senior mortgage loan to an affiliate of the Relevant Group for the refinancing of the 178-key Dream Hollywood and Tao Restaurant in Los Angeles.
The 10-story, West Coast flagship of Dream Hotels features three dining and nightlife venues, including Tao, Beauty & Essex and the Highlight Room, as well as an 11,000-sq.-ft. rooftop with pool deck and 3,000 sq. ft. of meeting and event space.
“We see tremendous opportunities to provide creative financing to hotel sponsors and developers in what has become a volatile credit market,” said Francis Lively, president/CEO, LCP. “Our lending platform provides financing solutions in growth markets across the U.S. With the Dream Hotel, we created a bespoke financing on a high-quality asset at a great basis. We are excited about the hotel’s prospects as it joins the Hyatt franchise system.”
Andrew Trickett, partner/head of investments, Safanad, added, “Real Estate is one of Safanad’s core platforms, and alongside partners like LCP, we are looking to use our significant internal investment expertise to unlock strong risk-adjusted returns for our balance sheet and investment partners. “Given the current volatility in the debt capital markets, we see a potentially scalable opportunity to provide hospitality financing solutions to strong sponsors that can deliver attractive risk-adjusted returns at a protected basis and The Dream fits squarely within that strategy.”
“The team at Relevant built a first-class property in the heart of Hollywood, and we believe in their business plan and helping them realize the value that will be unlocked with the Dream-Hyatt merger,” added Peter Sullivan, COO, LCP.
The Dream Hollywood is located at the corner of Selma Ave. and N. Cahuenga Blvd., one block off Hollywood Blvd., tucked among the scenic Hollywood Hills. The property was designed by the Rockwell Group and features accommodations with views and luxurious guest amenities. Each guestroom features luxurious black walnut finishes, a cozy sitting area, rainfall showers, Karl Lagerfeld amenities and state-of-the-art technology