Slate Property Group and Atalaya Capital Management LP partnered in a joint venture to provide a $30 million mezzanine loan for the repositioning of the former Cecil Hotel in Downtown Los Angeles. The loan is subordinate to a senior loan provided by Centennial Bank. The borrower Simon Baron Development Group is a prominent New York-based developer with select projects on the West Coast.

The transaction marks a natural progression for Slate and Atalaya. Both groups have been accelerating investments in the real estate space, particularly on the west coast. Together, the Joint Venture’s knowledge of the submarket and the nature of the business plan enabled it to underwrite the asset and close the loan with speed and agility.

“We believe in the strategy providing affordable housing in Downtown Los Angeles, a submarket where it is much-needed,” said Martin Nussbaum, co-founder of Slate Property Group. “Despite many lenders sitting on the sidelines, Slate is actively originating loans and maintaining a focus on transitional assets, including construction, reposition, land and inventory, among others, as well as buying existing loan positions,” Nussbaum added.

“This financing allows Simon Baron to execute on their ambitious business plan in spite of the COVID landscape and demonstrates Atalaya's commitment to expanding its real estate business on the West Coast,” said Young Kwon, head of Real Estate at Atalaya Capital Management.

About Slate Property Group

Slate Property Group is a New York-based owner, operator and developer of residential and commercial real estate. The firms manages all phases of development in adaptive re-use and repositioning projects as well as ground-up construction. During the last ten (10) years, the principals of Slate Property Group have purchased in excess of $4 billion in real estate assets including multifamily, mixed-use properties and development sites, making the firm one of New York City’s most prolific developers. Slate Property Group’s diverse portfolio includes over 3,500 units in various stages of development in neighborhoods in New York and California. For more information, please visit www.slatepg.com.

About Atalaya Capital Management

Atalaya Capital Management is a privately held, SEC-registered, alternative investment advisory firm. Atalaya primarily focuses on making private credit and special situation investments in three principal asset classes – specialty finance, real estate and corporate.