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Relevant Group defaulted on a loan tied to a major redevelopment of the Morrison Hotel in Downtown LA, the company confirmed to Bisnow Tuesday.
As of June 21, Relevant Group owed $13.2M on a loan tied to the project, according to a notice of default filed with Los Angeles County and reported by The Real Deal. That amount is subject to increases until the loan is current, TRD reported.
In an emailed statement, Relevant principal Grant King indicated that an extension was in the works and that the default was a temporary hitch.
"We are working on a loan extension with the lender like everyone else," King wrote to Bisnow. "We anticipate finalizing extension shortly."
The lender, Columbia Pacific Advisors, made the loan in 2021 for $12.7M, according to TRD. Relevant also locked down a loan for an undisclosed amount that same year from bridge lender Lone Oak Fund, according to TRD.
As recently as last year, Relevant said it planned to redevelop the property at 1246 South Hope St. into a 444-room hotel with 136 residential units.
Last year, Relevant Group was seeking a partner for the project, The Real Deal reported at the time.
The Hollywood-based firm is also looking for a partner on its hotel on Schrader Avenue in Hollywood, not far from two hotels, the Tommie and Thompson, which it lost in foreclosure in February, TRD reported at the time.
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