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A mezzanine lender that loaned $72M to Relevant Group to fund the completion of the Tommie and Thompson hotels in Hollywood has initiated a UCC foreclosure to get repaid.
The 190-key Thompson hotel and the 212-key Tommie hotel are headed for auction on Dec. 21, according to Eastdil Secured marketing materials for the auction obtained by The Real Deal. The lender, Machine Investment Group, loaned Relevant Group money for the properties in April 2021.
“Relevant has engaged counsel and advisors and are currently working to determine the most prudent path forward,” Relevant co-founder Grant King told TRD.
The hotels have encountered trouble since the start of the pandemic, when the projects racked up bills with contractors that allegedly went unpaid, the Hollywood Reporter reported in 2021. Opening dates were pushed back multiple times and both hotels ended up opening in the second half of 2021.
Relevant's hotels are walking distance from its first project, the Dream Hotel. It is planning another project in Downtown LA, a revamp of the Morrison hotel.
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