NEW YORK, New York—The LCP Group, L.P., in a joint venture with Safanad, announced they 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 has three dining and nightlife venues, including Tao, Beauty & Essex, and the Highlight Room, as well as an 11,000 square foot rooftop with a pool deck and 3,000 square feet 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 and CEO of LCP. “Our lending platform provides financing solutions in growth markets across the United States. 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.”
“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,” said Andrew Trickett, partner and head of investments at Safanad. “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,” continued Peter Sullivan, COO of LCP.
The Dream Hollywood is located one block off Hollywood Boulevard, tucked among the Hollywood Hills. The property was designed by the Rockwell Group and features accommodations with black walnut finishes, a sitting area, rainfall showers, Karl Lagerfeld amenities, and technology.