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