Hybridge Capital Management has acquired a partially developed hotel in Los Angeles' Historic District, leveraging its adaptive reuse potential amidst the area's revitalization and preparation for the 2028 Olympic Games.

Target Information

This project presents a unique adaptive reuse opportunity in one of Los Angeles’ most vibrant neighborhoods. The initiative capitalizes on zoning reforms established in 2004, aimed at encouraging the redevelopment of historic structures within the Historic Downtown District. The property is a 13-story, partially redeveloped hotel offering 180 guest rooms. It was originally an office building, and although redevelopment started in 2018, it stalled in 2020 at approximately 40% completion due to the prior developer defaulting on a construction loan amid the COVID-19 pandemic. After the foreclosure, Hybridge Capital Management (HCM) secured the asset in an off-market deal in 2025—free from liens—including the ground lease—at an undisclosed amount. This acquisition enables the investor to leverage the existing $49 million basis from a fee simple position.

Spanning 12,432 square feet with a total building area of 143,513 square feet, the property is strategically located in the Historic District, characterized by its eclectic mix of celebrated restaurants, bars, art galleries, and fashion boutiques. The hotel is set to feature a variety of amenities, including a mezzanine-level piano lounge, an upscale restaurant, a spacious lobby and café, a lounge and business center, a fitness center and sundry shop, 2,512 square feet of meeting space, and 84 parking garage spaces. The hotel has also received pre-approval from Hilton to operate under its luxury Tempo by Hilton brand, enhancing its appeal compared to the previous developer’s Cambria flag.

Industry Overview in Los Angeles

The Historic District stands among Los Angeles' most dynamic neighborhoods, marked by a vibrant cultural scene and an increasing number of visitors. With its rich blend of history and modernity, the area attracts a diverse demographic of residents, workers, and tourists, contributing to its economic vitality. The district is undergoing significant transforma