The developers of a mixed-use project on the site of The Viper Room on the Sunset Strip are in default on a loan for the project and owe lenders more than $69M.

Silver Creek Development, the project’s Scottsdale, Arizona-based developer, received final approvals from the city of West Hollywood in August 2024, according to WeHo Online, which first reported the foreclosure.

Los Angeles-based Cottonwood Group lent $62M to the 8850 Sunset Blvd. project in 2022. In an emailed statement, Cottonwood Group CEO Alexander Shing confirmed that Cottonwood owns the loan on 8850 Sunset Blvd. and that the property is both in default and amid the foreclosure process.

The 8850 Sunset project was planned to bring to the site a 90-room hotel, five restaurants, 78 apartments and a new space for the famed nightclub The Viper Room, which would be demolished to make way for the new 11-story development.

The loan that is now in default was executed as part of Cottonwood’s platform with BCEG International Investment-US, which was announced in 2020, according to a 2022 press release from Cottonwood. BCEGII is a subsidiary of China-owned Beijing Construction Engineering Group.

“We are pleased to have provided financing for such a historical Hollywood landmark,” Cottonwood Chief Investment Officer Mark Green said in the 2022 release. “This transaction showcases Cottonwood’s unique ability to furnish creative capital solutions for compelling opportunities that benefit all parties.”

A sale of the property is slated for June 17, according to WeHo Online.