Attributes

Keys

285

Payment Type

Interest Only

Interest Rate

SOFR + 1.71%

Description

Jones Lang LaSalle (“JLL”) has been retained on an exclusive basis by the Seller to arrange the sale of a $90 million non-performing luxury hospitality loan (the “Loan” or “Note”). The Loan is secured by a first-lien interest on the leasehold deed of trust in a full-service luxury hotel located Los Angeles, CA (the “Property” or “Collateral”). The Loan went into payment default in September 2025 and maturity default in December 2025. As of August 2026, the Loan is non-performing and has an unpaid principal balance of $90,000,000.

The 16-story Property features 285 guest rooms, landscaped gardens, and elegant architecture. In 2018, the Property underwent a comprehensive renovation that blended Old Hollywood elegance with contemporary design standards. Today, the Property remains a benchmark for luxury hospitality, combining a wellness floor, rooftop saltwater pool, acclaimed restaurant, strategic location, and strong brand reputation which appeals to both domestic and international travelers.

The offering presents investors the opportunity to acquire the Loan at a favorable basis, significantly below replacement cost and historical sales for luxury product in the market, with a potential path to ownership.

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Investment Highlights

Path to Ownership

The non-performing Loan provides investors the ability to potentially step into the ownership position on a full-service luxury hotel at an attractive basis.

Insurmountable Barriers to Entry

A rare opportunity to acquire a top-tier asset in a luxury market with insurmountable barriers to entry fueled by restrictive zoning, scarce land, and prohibitive development costs.

Iconic Five Star Trophy Investment Opportunity

A landmark asset of significant scale and prestige, the irreplaceable world-class luxury hotel is situated on a full city block at the gateway to Beverly Hills, one of the world’s most coveted and supply-constrained real estate markets.

Exceptional Product Quality with Additional Upside Potential

Since 2018, ownership has invested $13.3 million ($46,700 per key) into the Property, including a renovation of all 285 keys, state-of-the-art wellness rooms and private fitness facilities, a lobby refresh, pool upgrade, and complete remodeling of the restaurant with new outdoor dining.