WEST HOLLYWOOD, CA – iBorrow, a nationwide private lender for commercial real estate, announced that it has provided financing to Ian Schrager and Ed Scheetz to enable their acquisition of a 139-key hotel property formerly known as the Standard Hotel in West Hollywood, California. The $86.7 million loan was funded through a co-lending partnership between iBorrow and Reuben Brothers.
“We’ve observed that the hospitality sector has experienced increasing demand in gateway cities, including Los Angeles, and we are confident in the ability of this successful and experienced team of hotel operators to execute on their plan as West Hollywood continues to draw tourists,” according to Andy Peltz, Co-Executive Chairman at iBorrow. “iBorrow continues to be drawn to opportunities in the hospitality sector that involve well-located assets and sound business plans, including renovation and repositioning.”
According to David Reuben Jr., “Ian Schrager and Ed Scheetz identified an opportunity to acquire this historic property located in the heart of the Sunset Strip, an iconic tourist destination, and plan to renovate and rebrand the hotel to the PUBLIC Hotel flag, which required a creative and flexible financing structure. We were able to assist by providing funds in a timely manner that were sufficient to support the acquisition and the process of obtaining the permits needed to execute the long-term business plan—especially as the property will remain non-operational through the term of the loan.”
The current market presents unique challenges for borrowers looking for capital to acquire and upgrade hospitality properties. Ian Schrager added, “iBorrow and the Reubens developed a creative financing structure that provided the flexibility to enable us to close quickly and execute on our plan for the property. As our lending partners, iBorrow and the Reubens were strategic, quick, and supportive and they were truly a pleasure to work with.”
According to a recent report, CBRE forecasts increased RevPAR growth for the hotel industry in 2023, despite economic challenges. The industry is expected to see growth in demand for leisure and corporate travel, driven by the increasing availability of COVID-19 vaccines, pent-up demand, and a shift towards remote work.
The hotel property is located at 8300 Sunset Boulevard in West Hollywood, California.
iBorrow is a nationwide direct lender that provides short-term bridge financing to commercial and multi-family property owners at fixed interest rates on a non-recourse basis. iBorrow lends on all property types nationwide. Visit our website at www.iBorrow.com for more information about our loan program.
About Reuben Brothers
Reuben Brothers is a leader in private equity, real estate investment and development, and debt financing. Its real estate holdings are significant in scale and broadly diversified, encompassing office, retail, hotel, residential and infrastructure properties across the world. For more information visit www.reubenbrothers.com.