Relevant Group seeks partner for Hollywood hotel project
Relevant Group seeks partner for Hollywood hotel project
Schrader Boulevard site has entitlements 203-key hotel
SEP 13, 2023, 4:34 PM
Relevant Group is looking for a joint venture partner in a fully entitled hotel site in Hollywood, The Real Deal has learned.
Relevant has hired Cushman & Wakefield to market the Schrader hotel project to potential investors, according to marketing materials for the site and a LoopNet listing. Relevant, run by Grant King, is also willing to sell the property.
The site, located at 1600 Schrader Boulevard, is fully entitled for 203 hotel rooms, marketing materials show. King declined to comment.
“There’s a ton of flexibility,” Cushman & Wakefield broker Mike Condon said, adding Relevant was open to different deal structures. “Every option is on the table right now.”
The property sits on the same block as the Tommie and Thompson hotels — two properties Relevant lost to foreclosure earlier this year, after defaulting on mezzanine debt tied to the developments.
Relevant bought the Schrader site for $20 million in 2019, records show, a year after the previous owner, Koar Institutional Advisors, had scored city planning approval for a hotel project.
The limited liability company that owns the hotel site, Schrader Venture, is also linked to Missouri-based CRA Investments and Hatteras Sky, a development firm based in Atlanta, Los Angeles County property records show.
Relevant is in discussions with potential operators, Condon said. If it finds the right one, Relevant will tap its existing partners “to get this thing out of the ground,” he added.
Condon and Relevant hope the entitlements will draw interest from potential investors.
“Hollywood is such a challenging market to get entitlements,” Condon said, adding that entitlements do expire. “You have to keep moving along.”
Relevant has experience marketing projects to potential joint venture partners. Last year, the firm said it was looking for an investor in the 111-unit Morrison Hotel in Downtown L.A. — named after The Doors’ fifth studio album — which Relevant plans to redevelop.
Also in Downtown L.A., Relevant’s multifamily division is raising money from EB-5 investors for 1200 Olive, a 400-unit, ground-up apartment complex, an executive said on LinkedIn.
California has seen a decline in new hotel openings this year compared to last, because of increased construction costs and shrinking available capital, according to hotel brokerage Atlas Hospitality Group.
