Slate Property Group and Atalaya Capital Management LP partnered in a joint venture to provide a $30 million mezzanine loan for the repositioning of the former Cecil Hotel in Downtown Los Angeles.
The loan is subordinate to a senior loan provided by Centennial Bank.
The borrower Simon Baron Development Group is a prominent New York-based developer with select projects on the West Coast. The developer is redeveloping the historic hotel with 299 hotel rooms and 264 affordable units.
Slate and Atalaya have been accelerating investments in the real estate space, particularly on the west coast.
“We believe in the strategy providing affordable housing in Downtown Los Angeles, a submarket where it is much-needed,” said Martin Nussbaum, co-founder of Slate Property Group. “Despite many lenders sitting on the sidelines, Slate is actively originating loans and maintaining a focus on transitional assets, including construction, reposition, land and inventory, among others, as well as buying existing loan positions,” Nussbaum added.
“This financing allows Simon Baron to execute on their ambitious business plan in spite of the COVID landscape and demonstrates Atalaya’s commitment to expanding its real estate business on the West Coast,” said Young Kwon, head of Real Estate at Atalaya Capital Management.