Via Friday in LA
Good morning! A big downtown hotel may be in trouble. The Japanese newspaper Rafu Shimpo reports of the financial problems of the Kyoto Grand Hotel and Garden, the former New Otani Hotel at Los Angeles and 2nd Streeet. "The Kyoto Grand Hotel and Garden, and Weller Court, two major Little Tokyo landmarks, are currently in default on a loan of $33.8 million. The lender, First Citizens Bank and Trust, sent a default notification to Little Tokyo Partners LP on March 15. Default notification is the first step in a foreclosure proceeding." According to the paper, the hotel is currently owned by local firm real estate firm 3D Investments, which bought the hotel from East West Development Corporation for $54 million in August 2007." Back when the hotel changed hands in 2007, the Los Angeles Times covered the sale, noting that at least $8 million worth of improvements were planned. The Weller Court shopping mall, meanwhile, contains the Marukai rmarket, while the hotel's Japanese restaurant Thousand Cranes is now closed. The hotel is also famous for its sunken Starbucks, popular with downtown city workers.
· Landmark Little Tokyo Properties in Default [Rafuo Shimpo]
· New Otani's name changes [LA Times]