HFF Announces Sale and Acquisition Financing of Hotel MdR in Southern California’s Silicon Beach

May 03, 2018 04:17 pm

HFF announces the sale of and acquisition financing for Hotel MdR – a DoubleTree by Hilton Hotel, a 283-room, full-service hotel located in West Los Angeles within the Marina del Rey submarket.

The HFF team arranged the sale on behalf of Lubert-Adler, Channel West Group and Arris Investments to U.K.-based London & Regional Properties (L+R). This is the first hotel acquisition in the United States for L+R, which has a long-standing relationship with HFF’s London office.

Additionally, the HFF team worked on behalf of L+R to place the five-year, floating-rate loan with a Germany-based lender.

Hotel MdR was extensively renovated and repositioned as a soft-branded DoubleTree Hotel in 2014. The hotel features an outdoor heated pool and patio, state-of-the-art fitness facility, 24/7-business center, market, energy room with ping-pong table, 5,429 square feet of indoor/outdoor event space and Barbianca Local Kitchen restaurant. Hotel MdR occupies a premier location at 13480 Maxella Avenue in the heart of Silicon Beach, the third largest technology hub in the world. The hotel is proximate to Playa Vista, Santa Monica and Venice, which are home to some of the world’s top TAMI (technology, advertising, media and information) companies, including Google, YouTube, Sony, Facebook and IMAX. Additionally, the hotel is located just minutes from vibrant West Los Angeles submarkets, including Santa Monica, Venice and Culver City as well as Los Angeles International Airport.

The HFF investment advisory team that arranged the transaction consisted of managing directors Tony Malk and Scott Hall and real estate analyst Aaron Lapping.

The HFF debt placement team representing the borrower included director Brad Greenway in HFF’s London office along with executive managing director Kevin MacKenzie and director Matthew Stewart in HFF’s Los Angeles office.

“HFF’s deep knowledge and relationships in the U.S. hotel market allowed us to strategically target a mutually beneficial transaction for both buyer and seller,” Malk said. “This transaction demonstrates HFF’s cross-border capabilities as well as the continued desire of global capital sources to acquire well-located, quality hotels in strategic markets.”

“Hotel MdR is a uniquely located asset that derives significant demand from its surrounding technology hub,” Hall added. “It will continue to benefit from continued demand growth and very little new competitive supply.”

“This transaction exemplifies the strength of the HFF platform since HFF was able to advise on all components of the transaction while successfully importing capital from both the U.K. and Germany,” Greenway said.

Holliday GP Corp. ("HFF"), a California licensed real estate broker, California License #01385740.

About Lubert-Adler

Lubert-Adler is a real estate investment company co-founded by Ira M. Lubert and Dean S. Adler in March 1997. Messrs. Lubert and Adler collectively have over 60 years of experience in underwriting, acquiring, repositioning, refinancing and exiting real estate assets. As of March 2018, Lubert-Adler has raised over $8 billion of equity and invested in over $18 billion of assets. The Lubert-Adler investment team consists of experienced professionals with strong backgrounds in real estate acquisition, asset management, distressed restructurings and capital markets. Since its founding, Lubert-Adler has distinguished itself through the combination of opportunistic acquisition philosophies, coupled with value enhancement programs, designed to create high-quality assets that seek to generate current yield at a favorable cost basis. Learn more at http://www.lubertadler.com.

About Channel West Group

Channel West Group is a privately held real estate investment and advisory firm, which operates in the Western United States markets where the firm's senior members have over forty years of experience. Learn more at http://www.channelwestgroup.com.

About Arris Investments

Arris Investments is a Los Angeles based real estate investment management firm focused on sponsoring and providing joint venture equity capital to projects across the Western United States. On behalf of both institutional and private investors, Arris capitalizes and operates real estate with value-added business plans. Learn more at http://www.arrisinvestments.com.

About L+R

L+R is a property company based in London, UK, and is regarded as one of the largest privately held property companies in Europe. Founded in 1987 by brothers Richard and Ian Livingstone, L+R has business interests in over eight countries, with offices in London and Panama City. L+R has an extensive hotel portfolio, with more than 11,700 rooms including iconic luxury hotels, full-service hotels, branded hotels and resorts in the Caribbean and Europe and the Atlas Hotel Portfolio. L+R’s hotel investments include the London Hilton on Park Lane, Trafalgar Hilton, The Empire, Cliveden Hotel, Chewton Glen and the Fairmont, Monte Carlo. L+R’s worldwide investment and development programme is in excess of £9.0 billion. Learn more at http://lrp.co.uk/hotels.

About HFF

HFF and its affiliates operate out of 26 offices and are a leading provider of commercial real estate and capital markets services to the global commercial real estate industry. HFF, together with its affiliates, offers clients a fully integrated capital markets platform, including debt placement, investment advisory, equity placement, funds marketing, M&A and corporate advisory, loan sales and loan servicing. HFF, HFF Real Estate Limited, HFF Securities L.P. and HFF Securities Limited are owned by HFF, Inc. (NYSE: HF). For more information, please visit hfflp.com or follow HFF on Twitter @HFF.

TONY MALK, (310) 407-2100
CA. Lic. #01810668
HFF Managing Director
SCOTT HALL, (858) 552-7690
CA. Lic. #01917029
HFF Managing Director
BRAD GREENWAY, 44-020 7509 6700
CA. Lic. #0198161
HFF Director
KEVIN MACKENIZE, (949) 253-8800
CA Lic. #01898953
HFF Executive Managing Director
KIMBERLY STEELE, (713) 852-3420
HFF Digital Content/Public Relations Specialist