iBorrow, a nationwide private lender for commercial real estate, has provided financing to Ian Schrager and Ed Scheetz to enable their acquisition of a 139-key hotel property formerly known as the Standard Hotel in West Hollywood, CA. The $86.7-million loan was funded through a co-lending partnership between iBorrow and Reuben Brothers.
“We’ve observed that the hospitality sector has experienced increasing demand in gateway cities, including Los Angeles, and we are confident in the ability of this successful and experienced team of hotel operators to execute on their plan as West Hollywood continues to draw tourists,” said Andy Peltz, co-executive chairman, iBorrow. “iBorrow continues to be drawn to opportunities in the hospitality sector that involve well-located assets and sound business plans, including renovation and repositioning.”
David Reuben Jr., co-owner, Reuben Brothers, said, “Ian Schrager and Ed Scheetz identified an opportunity to acquire this historic property located on the Sunset Strip, an iconic tourist destination, and plan to renovate and rebrand the hotel to the Public Hotel flag, which required a creative and flexible financing structure. We were able to assist by providing funds in a timely manner that were sufficient to support the acquisition and the process of obtaining the permits needed to execute the long-term business plan—especially as the property will remain non-operational through the term of the loan.”
The current market presents unique challenges for borrowers looking for capital to acquire and upgrade hospitality properties. Schrager added, “iBorrow and the Reubens developed a creative financing structure that provided the flexibility to enable us to close quickly and execute on our plan for the property.”