Hotelier brothers Jason, Larry and Michael Pomeranc missed an August maturity date — and the $40 million loan on their Sixty Beverly Hills is now in special servicing, according to Morningstar Credit.
The loan on the luxe Beverly Hills hotel, owned by the brothers’ Sixty Collective, has a $37 million balance. That comes out to more than $300,000 per key for the 118-room hotel on Wilshire Boulevard.
The debt has been in and out of special servicing, but the Pomeranc brothers were able to extend the loan multiple times. July servicer commentary via Morningstar noted, the “borrower has advised that they are working with special on additional extension with plans to close mid-August.” Now that we’re approaching late-August, a decision could be made and revealed soon.
The hotel’s net cash flow has never reached underwriting levels in the decade since Natixis lent the money, per Morningstar data. The hotel at 9360 Wilshire Boulevard isn’t believed to be worth what it once was either. A 2024 appraisal put its value at $59.5 million compared to $85 million in 2018, per Morningstar. Still, that’s more than the debt sponsored by the three brothers on the SoCal chic real estate.
Sixty Hotels, the brand of boutique hotels, Jason Pomeranc, the lender and special servicer did not immediately respond to requests for comment.
It’s not an easy time to own a hotel in Los Angeles, and that’s played out via distressed debt. The Reuben brothers recently took over Witkoff’s West Hollywood hotel on the Sunset Strip. Steve Witkoff — founder of Witkoff Group and President Donald Trump’s Middle East special envoy — handed the Edition over to Simon and David Reuben. The unpaid debt amounted to $211 million.
A Marriott hotel by LAX is in receivership after a $45 million default. It was the special servicer and lender that requested a receiver, but the owner consented and wants to hand back the keys.
There are exceptions, of course — and investors who are going all in. The Surfrider, an oceanfront hotel in Malibu, traded for $37.5 million last year, which happened to be one of California’s priciest per-key deals ever at almost $2 million a key. And as far as investors go, Daniel Negari purchased two WeHo hotels back-to-back — the latest this spring.
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Reuben brothers take keys to Witkoff’s West Hollywood hotel
Sixty Collective bags one more loan extension for Beverly Hills hotel