November 22, 2024 #1 Local News, Information and Event Source for the Century City/Westwood areas.

Next Century Partners to Undergo Foreclosure on $2.5 Billion Stake in Century Plaza Hotel Redevelopment

December 14 foreclosure auction set for Next Century Partner’s stake in the project

By Dolores Quintana

Next Century Partners, which is part of the Los Angeles company Woodbridge Capital Partners, will undergo a foreclosure on their stake in the Century Plaza Hotel redevelopment project in Century City, as reported by The Real Deal.com. On December 14, a uniform commercial code foreclosure auction for Next Century Partner’s stake in the project will take place. 

The Century Plaza Hotel is located at 2025 Avenue of the Stars. 

The stake is worth $2.5 billion, as reported by Co-Star’s news site and this specific kind of auction makes it possible for Next Century Partners to avoid a court appearance. Woodbridge Capital Partners originally purchased the hotel in June 2008 for almost $367 million. The purchase was co-financed by D.E. Shaw. 

However, the project faced pushback from local residents who opposed the redevelopment of the hotel which would have cost billions of dollars and would have included a plan that called for the Plaza Hotel to be razed. Another issue was trying to find financing in an already difficult economy even prior to the pandemic. 

David and Simon Reuben, who are businessmen who are philanthropists as well, gave the project $275 billion as reported by The Real Deal.com, JPMorgan Chase provided a senior load of $446 million, Colony Capital added mezzanine financing from an investment vehicle that they manage in the amount of $120 million and CMB Export LLC Regional Center lent $450 million in EB-5 financing to the project as reported by New Century.

The recently completed Century Plaza complex, completed in 2021, has 400 hotel rooms with an additional 331 residential units in two 44-story towers. 268 of the units are considered luxury housing, the hotel itself has been completely renovated and is 19 stories and the complex is completed by a 94,000 square foot area of retail stores and restaurants. The complex comes with 63 “high-end” units meant for sale on the top floors of the hotel as reported by Co-Star. Those units will be sold for prices between $1.8 and 11.8 million each. 

Part of the issue with the new complex which caused the financial problems for Next Century and Woodbridge is the fact that the complex was opened right in the middle of the second year of the pandemic. During this time, home sales were down which adversely affected the new Century Plaza. 

It is not known which of the creditors in this deal was responsible for setting the foreclosure in motion and the main group of creditors who are part of the project are not part of the public record. Motcomb Estates Limited is the entity for whom the foreclosure was coordinated and according to Co-Star is affiliated with the Reubens. 

Alan Reay, president of Irvine hotel brokerage Atlas Hospitality Group, said according to Co-Star, that the auction should be popular among developers and real estate investors. He also cautioned, as quoted by CoStar,  “In the development business, you’ve got to have super deep pockets. If you time it right, you make a fortune. If you miss it, you get wiped out.”

Related Posts

Lottery to Determine Public Access to Menendez Brothers Hearing on Monday

November 21, 2024

November 21, 2024

Sixteen Public Seats Will Be Available for the High-Profile Hearing Another step in the case of Lyle and Eric Menendez...

LAPD Motorcycle Officer Hospitalized After 405 Freeway Crash in Sepulveda Pass

November 21, 2024

November 21, 2024

Collision Near Skirball Center DrivePossibly Involving a Tesla Caused Major Traffic  The 405 Freeway was the scene of a motorcycle...

Santa Monica Police Release Body Cam Footage of Deadly Force Incident Outside Headquarters

November 21, 2024

November 21, 2024

Graphic Video Shows a Violent Assault on an SMPD Officer by a Knife-Wielding Suspect The Santa Monica Police Department (SMPD)...

Kick Off the Holidays at Westfield Century City’s Holiday Village Open House on November 23

November 20, 2024

November 20, 2024

Enjoy Complimentary Treats, Sip Festive Beverages at an Evening of Holiday Cheer Celebrate the start of the holiday season at...

Last Minute Additions to the Best Thanksgiving 2024 Feasts and Pies To Go

November 20, 2024

November 20, 2024

If Other Faves are Sold Out, Here’s All The Quality Places to Try Now Celebrity chefs Susan Feniger and Mary...

Everytable’s Holiday Meal Collaboration To Support LA’s Unhoused Youth

November 20, 2024

November 20, 2024

Chef Created Thanksgiving Meal Benefits My Friend’s Place. Everytable, the mission-driven company committed to making scratch-cooked, nutritious meals accessible to...

Los Angeles City Council Codifies Sanctuary Protections for Migrants with New Citywide Ordinance

November 19, 2024

November 19, 2024

Mayor Bass Prioritized the Ordinance after Trump’s Mass Deportation Threats The Los Angeles City Council voted unanimously Tuesday to officially...

Hammer Museum Presents 10th Edition of MoMA Contenders: Screenings, Conversations with Top Filmmakers

November 19, 2024

November 19, 2024

Lineup Features Films by Steve McQueen, Sean Baker, and Brady Corbett The Hammer Museum will host the 10th edition of...

Film Review: Wicked

November 19, 2024

November 19, 2024

By Dolores Quintana Director John Chu (Crazy Rich Asians, In The Heights) has crafted an effervescent take on the blockbuster...

Randy’s Donuts Arrives in Culver City with Free Donuts and a $250 Gift Card Giveaway

November 19, 2024

November 19, 2024

Grand Opening on November 19 Includes Sweet Giveaways Starting at 6:00 a.m. The time is finally here. Randy’s Donuts is...

West LA College Expands Zero-Cost Textbook Programs with $600K Grant

November 18, 2024

November 18, 2024

College Aims for 50 Zero-Cost Textbook Programs by 2025  West Los Angeles College (West) is expanding its zero-cost textbook program...

Blank Rome Hosts Annual Adopt-A-Center Event to Empower Los Angeles Youth

November 18, 2024

November 18, 2024

C5 Los Angeles Students Shine in Leadership and Mentoring Program Blank Rome, a prominent Am Law 100 firm with 16...

LA Controller Kenneth Meija: City Left $513 Million of Homelessness Budget Unspent

November 18, 2024

November 18, 2024

Inefficiencies Blamed for Underspending Despite Record Allocation in FY2024  The City of Los Angeles hasn’t spent over half of its...

(Video) At Vistamar School – Discover the way high school should be

November 18, 2024

November 18, 2024

Students achieve remarkable outcomes with our strong academics, small classes, andpersonalized approach. Our graduates don’t just attend college—they excel. Vistamar’sunique...

Missing Person Alert: Authorities Seek Help to Find Michelle Lerner, 63, in Culver City

November 18, 2024

November 18, 2024

Woman Was Last Seen Near Prospect Avenue and Venice Boulevard  Authorities are asking for the public’s assistance in locating a...