A hotel known for its sordid past has hit the market. According to a property listing from Colliers, the ground lease of the famed Cecil Hotel is currently available for sale.
The property is marketed by Colliers’ Adam Tischer, Jeffrey Donnelly and Dmitry Levkov, with pricing guidance undisclosed. The ground lease was acquired by Simon Baron Development in 2016, its website shows.
The 15-story building is located at 640 South Main St. in Downtown Los Angeles. The hotel was initially constructed in 1924, and in 2021, it was reopened as a supportive housing site for the unhoused.
The property currently consists of a 601-unit housing complex with 91 years remaining on its ground lease. The 105,400 square foot property is currently 60 percent leased, with projections indicating an increase to 80 to 90 percent occupancy by the middle of 2024, the listing states.
All units at the property are restricted to either 30 percent, 40 percent, 50 percent or 60 percent of the area’s median income. The listing also shows that the property is eligible for the MGP Welfare program, which is an initiative offered by the State of California and reduces the taxable value of the asset by 100 percent.
The property has faced scrutiny in the past due to its higher levels of vacancy during a significant housing crisis in Los Angeles. Prior to its time as affordable housing, the property became known for multiple deaths that occurred there. In 2021, the hotel was also the subject of a Netflix documentary, which followed the story of tourist Elisa Lam, who died at the hotel.
