AIDS Healthcare Foundation Pays Relevant $12.4M For Morrison Hotel
The AIDS Healthcare Foundation purchased the Morrison Hotel at 1246 S. Hope St. in Downtown from Relevant Group for $12.4M.
The sale, first reported by The Real Deal, represents a loss for Relevant, which bought the hotel for $18M in 2018, property records show. The Hollywood-based firm spent an additional $20M buying up parcels around the hotel. No sales have been recorded for those surrounding parcels, TRD reported. A larger hotel and residential project that would have included adding a 12-story tower was planned at the site.
The Morrison Hotel was built in the early 1900s and was most recently used as a single-room occupancy hotel, a form of de facto affordable housing once common Downtown.
Relevant defaulted on a $13.2M loan for the Morrison property in September. The sale resolved the issue with its lender, Columbia Pacific Advisors, according to TRD.
Relevant and AHF also inked a “development cooperation agreement” to jointly build a residential, hotel or commercial project as a condition of the sale, TRD reported, citing public records.
AHF also owns the Barclay Hotel at Main and Fourth streets in Downtown and a couple of other properties in Skid Row. In November, a Los Angeles Times investigation revealed uninhabitable conditions at many of its properties.
