Sixty Collective keeps collecting extensions on a $38 million loan tied to its Sixty Beverly Hills hotel.
The New York-based hospitality firm run by brothers Jason, Larry and Michael Pomeranc secured its fourth loan extension linked to the 118-room hotel at 9360 Wilshire Boulevard, the Commercial Observer reported, citing Morningstar.
Sixty Collective cut its “ultimate” deal with lender Natixis, which provided the original loan in 2017. The Los Angeles-based lender agreed to one final postponement — with an “ultimate” maturity in August 2026. But the terms were much more severe.
“While full terms of the extension are not known, the servicer’s commentary notes that there is a $3 million paydown of the balance, an increase in the interest rate and full recourse liability of 10 percent of the principal balance to the guarantor,” according to the Morningstar report.
The eight-story Sixty Beverly Hills opened in 2017, after redevelopment from a 1960s Best Western motel. Rooms recently ran from $317 to $362 a night, according to Tripadvisor.
Natixis provided the loan in mid-2017 with an original maturity date of August 2022, but it was sent to special servicing during the pandemic, according to Morningstar.
Although the loan received a forbearance and its maturity was pushed to August 2023 (extension 1), it returned to special servicing that same month after its owners couldn’t find the funds to pay, according to the Observer.
The Pomeranc brothers negotiated another extension (2) to February 2024, but was once again unable to pay.
The loan was granted yet another 120-day forbearance, until June (3).
In August, the borrower claimed it was under contract with another lender to refinance the debt, according to Morningstar. That deal has apparently collapsed.
Remarkably, another extension term (4) was granted by Natixis, this time until an “ultimate” maturity in August 2026.
The Pomeranc brothers founded the hotel group in 2014 after selling their interests in Commune Hotels & Resorts and Thompson Hotels.
The brothers, who also own a hotel in Manhattan, made headlines early last year for their sale of the 97-room Sixty SoHo in New York for $109 million, setting a post-pandemic record for hotel sale, according to the Commercial Observer.
— Dana Bartholomew
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