The Pendry West Hollywood, a luxurious hotel and condo project, once stood tall with an impressive appraisal value. However, recent financial struggles have cast a shadow over its initial success.

A Grand Opening

In 2021, AECOM Capital and Combined Properties unveiled the Pendry West Hollywood, a prestigious establishment boasting 149 hotel keys and an attached condo project, valued at nearly $526 million.

Financial Endeavors

After investing over $500 million in construction, the project underwent refinancing, securing $515 million in loans to support its development.

The Fall from Grace

Declining Appraisal Values

Despite its promising beginnings, recent appraisals have shown a significant decline in the property’s value. The once-valued hotel portion is now appraised at $139 million, marking a notable decrease.

Struggling to Repay Debt

AECOM Capital and Combined Properties find themselves entangled in financial woes, particularly concerning senior and mezzanine debt associated with the property. Notably, efforts to refinance a $350 million senior loan provided by Credit Suisse are underway.

The Pendry West Hollywood’s journey reflects the unpredictable nature of real estate ventures. While it initially soared to great heights, unforeseen challenges have led to financial turbulence, underscoring the importance of prudent financial management in the industry.