Simon Baron obtains a loan for the conversion of the Cecil hotel
Simon Baron Development has secured a $ 30 million mezzanine loan for its ongoing work to convert the notorious former Cecil Hotel in downtown Los Angeles.
A joint venture of Slate Property Group and Atalaya Capital Management provided the debt, said Martin Nussbaum, co-founder of Slate. The loan is subordinated to a $ 15 million mortgage made by Centennial Bank in August which replaces existing debt, he said.
In 2016, New York-based Simon Baron acquired the 99-year land lease under the Beaux-Arts building at 640 South Main Street. The 600-room hotel was built in 1924 and Simon Baron managed to push for it to be declared Los Angeles Historical and Cultural Landmark in 2017.
Shortly after acquiring the land lease, Simon Baron announced that he would convert the 16-story building into a boutique hotel and 301-unit micro-apartment. For the planned micro-units, it has joined forces with co-living startup Ollie. These plans seem to have failed – Ollie’s technology, the advantages and management contracts were picked up by a rival earlier this month. Simon Baron chairman Matthew Baron said new plans had not been set.
“We will be determining one of the best uses for the project over the next year or so,” he said.
The building has a notorious past that dates back to the 1980s. It was then that serial killer Richard Ramirez stayed there for a while. Another serial killer, Jack Unterweger, was also a resident in the early 1990s.
In 2011, it was renamed Stay on Main. But two years later, a Canadian traveler was found dead in a rooftop water tank, in what has been classified as an accident. His death became the inspiration for the fifth season of the FX series, “American Horror Story”.