The Line LA, a popular Koreatown hotel, received a $100 million loan. The Line is a 384-room hotel property located at 3515 Wilshire Blvd.
Institutional Property Advisors, a division of Marcus & Millichap’s Jordan Ray, Steven Buchwald, Jamie Matheny and Lexington Henn arranged financing for Yucaipa Cos., controlled by billionaire and chairman Ron Burkle.
“The property is strategically located in Koreatown, right between Hollywood and Downtown LA Locals and guests love the restaurants, bars and active lobby scene. This is a great halfway point to meet in LA,” Ray said in a statement. “We created a market and structured a very attractive transaction that met the client’s needs and vision for the asset.”
Corten Real Estate Partners provided the loan.
“The Line LA represented a tremendous opportunity for Corten to offer a tailored capital solution on a unique lifestyle hotel asset in a high barrier-to-entry market that is beginning to recover from the pandemic,” said Brandon Flury, Director at Corten Real Estate. , said in a statement. “We look forward to seeing the hotel stabilize and reach its full potential under the sponsor’s top-notch leadership.”
The hotel market is recovering. In 2021, $3 billion was invested in hotel properties in LA County, according to data from CBRE Group Inc. That’s up from $1.2 billion the previous year. Most notably, this is an increase from the $2.9 billion in assets traded in 2019 before the Covid-related lockdowns began.
In 2021, 77 hotels with a total of 8,018 rooms sold in LA County, according to data from Atlas Hospitality Group Inc. That was up from the 61 hotels and 4,161 rooms that changed hands. the previous year. It’s also a big jump from the 51 hotels and 4,346 rooms sold in 2019.
And in 2021, California set a record for the number of hotel rooms to open. LA County had the most hotels and hotel rooms to open of any county with 21 new hotels and 3,249 rooms.