Cottonwood closes $62 million WeHo loan

Cottonwood Group, a downtown-based private equity real estate investment firm, closed a $62 million loan for prime West Hollywood real estate located on the iconic Sunset Strip.

Located on a full city block at the corner of West Hollywood and Beverly Hills and adjacent to the iconic Viper Room, the building at 8850 Sunset Blvd. “offers optimal opportunities for development and improvement,” according to a statement released earlier this month by Cottonwood Group.

Currently serving as a retail hub, the property is being repurposed and will be transformed into a mixed-use development, including a redesigned venue and recording studio, multiple restaurants, cafes, retail spaces, a hotel five stars, 26 condominiums and eight units with income conditions.

Green

“We are thrilled to have funded such a historic Hollywood landmark,” Cottonwood Chief Investment Officer Mark Green said in the statement. “This transaction showcases Cottonwood’s unique ability to provide creative capital solutions for exciting opportunities that benefit all parties.”

The deal was executed as part of Cottonwood’s strategic platform with BCEG International Investment – US, which was announced in 2020.

“BCEGI-US and Cottonwood’s partnership and strategic investment platform remain strong in uncertain market conditions,” BCEGI-US Chief Executive Officer Ting Ting Han said in the statement. “Our symbiotic working relationship and considerable range of skills and expertise have allowed us to work together to bring these esteemed new projects to life.”

Cottonwood targets US real estate opportunities with capitalization up to $1 billion. In addition to its downtown headquarters, Cottonwood also has offices in Boston and New York. The firm specializes in generating alpha returns through investments with special opportunity characteristics.

Earlier this year, the real estate investment firm acquired a 636-unit multifamily portfolio located in San Antonio, Texas. The portfolio enjoys a prime location in San Antonio’s northeast submarket near some of the city’s top employers, including Amazon.com Inc.

Dorothy H. Lewis