Introduction to Nimes Real Estate and Hotel Financing
A boutique hotel in Burbank is headed for a makeover after securing crucial funds. Nimes Real Estate will receive $55 million of bridge financing to recapitalize the Hotel Amarano Burbank-Hollywood, Commercial Observer reported. Beverly Hills-based Nimes secured the three-year, floating-rate loan with two 12-month extension options from Atlanta-based Peachtree Group.
Background on Nimes Real Estate and the Hotel
Nimes bought the 132-room hotel at 322 North Pass Avenue in 2019 from Pebblebrook Hotel Trust, dropping $72.9 million on the property, before completing a multimillion-dollar renovation. The hotel, under Nimes’ ownership, faced business challenges from the onset of the pandemic in early 2020 and the five-month Writers Guild of America strike in 2023, Keegan Bisch, vice president of originations and credit at Peachtree, told CO.
Recapitalization and Stabilization of the Hotel
The recapitalization will enable the hotel to stabilize, thanks in part to its location in the middle of the Burbank Media District. Its proximity to Warner Bros. and Disney Studios already makes it the top booking hotel in the L.A. region for both studios, according to CO. “There is already a ton of in-place demand that they draw from,” Bisch said. “It’s a very high-quality, renovated hotel, plus there is a lot of growth in the market, so they are well positioned to take advantage of that.”
Market Growth and Future Prospects
Warner Bros. is in the midst of a 30-acre expansion of its campus a mile away from the hotel which is expected to drive traffic to the lodging property. In addition to the growth of the Warner Bros. complex, Disney’s move to consolidate its 52-acre Fox Studio Lot in Burbank, as well as NBCUniversal’s addition of more than 1.2 million square feet of new office and production space, are also expected to increase visitorship to the Hotel Amarano.
Nearby Hotel Properties
Other nearby hotel properties include The Tangerine at 3901 West Riverside Drive, a Best Western Plus at 3910 West Riverside Drive, and the Coast Burbank Hotel at 2011 West Olive Avenue.
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Conclusion
The securing of $55 million in bridge financing by Nimes Real Estate for the Hotel Amarano Burbank-Hollywood marks a significant step towards the hotel’s stabilization and future growth. With its prime location in the Burbank Media District and the ongoing expansions of major studios nearby, the hotel is well-positioned to capitalize on the increasing demand for lodging in the area.
FAQs
Q: How much financing did Nimes Real Estate secure for the Hotel Amarano Burbank-Hollywood?
A: Nimes Real Estate secured $55 million of bridge financing.
Q: Who provided the financing?
A: The financing was provided by Atlanta-based Peachtree Group.
Q: What are the terms of the loan?
A: The loan is a three-year, floating-rate loan with two 12-month extension options.
Q: What challenges did the hotel face under Nimes’ ownership?
A: The hotel faced business challenges from the onset of the pandemic in early 2020 and the five-month Writers Guild of America strike in 2023.
