Thorofare Capital has funded a $3.89 million fixed rate bridge loan for the acquisition and repositioning of the Hotel June Malibu. The 13-room hotel is situated on 4.33-acres to the immediate south / west side of Pacific Coast Highway at the intersection of Kanan Dume Road in the prestigious seaside community of Malibu, California. The area is the most densely developed in Malibu near Zuma Beach and Point Dume State Beach. The loan enabled the sponsor to acquire the property and commence an $830,500 renovation of all rooms and the property’s exterior.

Hotel June Malibu is in close proximity to Malibu’s most visited destinations, which include Zuma Beach, Point Dume, Surfrider Beach, Malibu Legacy Park, City Hall, and several popular shopping destinations including Malibu Lumber Yard, Malibu Country Mart, and Malibu Village. This location is prime for a boutique hotel, thus an extensive renovation will allow the sponsor to capture high ADRs and realize high occupancy in the lodging-constrained market. The sponsor intends to turn the Malibu Riviera into a unique and exclusive oasis within Malibu. The hotel will be completely renovated and a small, private restaurant with outdoor patio will be added. With the excess land, the sponsor will also have the ability to host weddings, farmer’s markets and include non-permanent structures (Airstream Trailers), which will provide additional streams of income.

Including extensions, the bridge loan will have a term of three years. The interest-only, non-recourse loan includes a Debt Service Reserve to cover operating deficits and interest payments during the extensive renovation, which may cause a temporary decrease in available rooms for rent.

The sponsor, SKG Real Estate Investments, is a Los Angeles-based privately held investment firm specializing in re-development and value-add lifestyle projects located in supply-constrained, West Coast markets.