Calmwater Capital, a national direct real estate lender, has provided a $66.5 million senior secured term loan to the Relevant Group for construction of the Thompson Hotel in Hollywood, Calif. Relevant Group plans to introduce the luxury boutique Thompson Hotel brand to Southern California.
Calmwater Capital has surpassed $100 million in Hollywood hotel lending in the last two years. This is its second partnership with the Hollywood-based developer. Relevant Group is owner of 95 hotel properties in eight countries including the high-profile Dream Hollywood Hotel nearby, which utilized $34.1 million from Calmwater in 2016 to add TAO Restaurant and other high-class amenities to what is now a renowned, world-class destination.
The proposed 188,393-square-foot hotel will contain 190 rooms and will be situated on a 0.5-acre site, less than one block north of Sunset Boulevard at 1541 Wilcox Avenue in Hollywood. Upon completion, the upscale, lifestyle hotel will offer a rooftop swimming pool, a rooftop restaurant and bar, fitness center, as well as 3,000 square feet of meeting space.
“What makes this partnership attractive is the major studio renovations and long-term office leases signed by Netflix, Viacom and Buzzfeed that are causing the demand for hotel space to far outpace supply, as well as the property’s ability to serve the needs of executives, actors and crew, and the ongoing flow of international tourists. Our long history with Relevant Group and its track record of operating 95 successful properties across eight countries make this a low-risk opportunity to support an incredible project,” said Larry Grantham, co-founder and senior portfolio manager of Calmwater Capital.
Recently, nearby office developments such as ICON/CUE at Sunset Bronson Studios and Columbia Square have added nearly 1 million square feet of class A office space to the neighborhood.
“In a high-density, heavily-trafficked area, a development like this will primarily cater to tourists; however, the meeting space and restaurants can also be utilized by local residents looking for another dining option or local businesses who might need a small convention space,” said Grantham.
The hotel will be managed by Two Roads Hospitality, a management company that primarily operates in the lifestyle hospitality space. Other notable Two Roads managed properties in the Los Angeles metro area include Tommie Hollywood, another venture related to the Relevant Group, and Terranea Resort, a beachfront luxury resort located in Rancho Palos Verdes, Calif.