Apollo Global Management, Inc. (NYSE: APO), announced that certain funds and entities managed by its affiliates has closed on more than $300 million in first mortgage loans for THEA at Metropolis and L’Ermitage Beverly Hills.
These two loans, combined with its $274.9 million loan to fund Silverstein Properties’ acquisition of US Bank Tower in mid-September, brings Apollo’s total first mortgage lending in Los Angeles to nearly $575 million over a two-month period.
Apollo Funds originated a $250 million first mortgage on THEA at Metropolis, a newly-completed residential building in Downtown Los Angeles consisting of 685 luxury rental apartments and 28,287 square feet of commercial space. THEA is part of a larger mixed-use development, which spans a full city block and also encompasses the 350-key Hotel Indigo and two luxury condo towers, as well as multiple restaurants and retail spaces. The five-year floating rate mortgage was finalized on November 25 as part of a refinancing by Greenland USA, the project’s sponsor.
Opened in September 2020, THEA is one of the tallest residential towers on the west coast. The amenity-rich property features open floor plans and glass walls offering incredible views of the City. Located at the intersection of Eighth and Francisco Street, THEA is just two blocks from the LA Metro and benefits from convenient access to the 10, 110, and 101 freeways. The Property’s prime location also provides residents with walkable access to the Staples Center, L.A. Live, and some of Downtown’s newest restaurants.
Apollo Funds also originated a $56.5 million first mortgage for the L’Ermitage Beverly Hills, a 116-key luxury all-suite hotel in walking distance of Rodeo Drive and the Golden Triangle. The five-year floating rate mortgage helped fund EOS Investor LLC’s acquisition of the renowned hotel, which has earned the Forbes Five-Star Award for more than 20 years in a row and was named one of the top 15 hotels in in Greater Los Angeles in 2020 by Travel + Leisure.
The hotel underwent a comprehensive $36.4 million renovation, completed in 2016, that involved extensive upgrades to its guest rooms, lobby, F&B, public spaces and amenities. The hotel also features a rooftop pool with 360-degree views of Los Angeles, private cabanas, library lounge, meeting place, fitness center and spas. Its restaurant and bar, Ave Nous, was recognized by Wine Spectator as part of its 2019 Awards of Excellence Wine Spectator as part of its 2019 Awards of Excellence.
“This trio of L.A. loans further reinforces Apollo’s faith in the enduring appeal of the West Coast’s major gateway cities,” said Senior Partner and Global Head of Commercial Real Estate Debt Scott Weiner. “While these transactions span a diverse range of property types, each benefits from strong and experienced sponsors and iconic Los Angeles locations.”
About Apollo
Apollo is a leading global alternative investment manager with offices in New York, Los Angeles, San Diego, Houston, Bethesda, London, Frankfurt, Madrid, Luxembourg, Mumbai, Delhi, Singapore, Hong Kong, Shanghai and Tokyo. Apollo had assets under management of approximately $414 billion as of June 30, 2020 in credit, private equity and real assets funds invested across a core group of nine industries where Apollo has considerable knowledge and resources. For more information about Apollo, please visit www.apollo.com.
