Portland, Ore.-based BPM Real Estate Group has encountered financial distress, defaulting on a significant $127 million loan linked to its Anaheim hotel project. The loan was for the construction of the 12-story, 326-key The Viv Hotel situated at 1601 South Anaheim Blvd., according to a report from The Real Deal.
BPM’s outstanding debt reached around $145 million as of Nov. 1, which triggered the default notice.
The project, funded by Miami-based commercial lender 3650 REIT with a $115 million senior construction loan in 2018, aimed to erect the hotel following the developer’s acquisition of entitlements. The Viv Hotel, initially launched under the Radisson Blu brand in 2020, encountered financial strain, necessitating additional capital. This led to an upsizing of the loan from 3650 REIT to $127 million in September 2022, the report states, citing Orange County public records.
Foreclosure proceedings, under California law, could commence no earlier than Feb. 11, allowing BPM the option to sell the property before foreclosure actions take place.
According to the hotel’s website, The Viv offers a mix of guest room and suite style rooms as well as several onsite amenities. This includes two pools, bars, an onsite restaurant and more. The hotel also overlooks Disneyland and is within close proximity of Angel’s Stadium, the Anaheim Convention Center and various shopping and dining amenities.
This year saw a number of hotel properties struggle to get back on track, with less sales and less development overall. According to a mid-year sales survey from Atlas Hospitality Group, Orange County overall saw a decline in hotel sales by about 68 percent. However, the median price per room increased by about 54 percent.
