Real estate lender Calmwater Capital has provided a $63 million loan to the Relevant Group for construction of the Thompson Hotel in Hollywood. Relevant Group plans to introduce the luxury boutique Thompson Hotel brand to Southern California.
This is Calmwater Capital’s 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 utilised $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 early payoff of that debt, combined with the booming demand for lifestyle and business hospitality in Hollywood have paved the way for the latest partnership between the two Los Angeles-area companies.
The proposed 188,393 square-foot hotel that will contain 190 rooms and will be situated on a 0.5-acre site, less than one block north of Sunset Blvd at 1541 Wilcox Avenue in Hollywood. Upon completion, the upscale, lifestyle hotel will offer a rooftop swimming pool, a rooftop restaurant and bar, fitness centre, 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,” says Larry Grantham, co-founder & senior portfolio manager of Calmwater Capital.
Recently, nearby office developments such as ICON/CUE at Sunset Bronson Studios and Columbia Square have added nearly one million square feet of Class A office space to the neighbourhood. As demand for studio and creative office space flourishes in direct correlation to the spike in output of digital content by streaming media services, this sub-market is currently undergoing density-driven development to serve business, residential and tourism markets. Its central location will attract both local residents and travellers alike, with its proximity to key tourist attractions such as the Hollywood Walk of Fame, the Pantages Theatre, and the Hollywood Bowl.
“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 utilised by local residents looking for another dining option or local businesses who might need a small convention space,” says 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, California.