Downtown LA’s landmark Barclay Hotel has sold after two years on the market. The 165-room property on the edge of the Historic Core and Skid Row traded hands for $21 million—about half of its $40 million asking price, The Real Deal reports.
It’s not yet clear what the new owner plans to do with the hotel. The buyer is Golden Hills Properties, a company owned by Michael Delijani.
Delijani is the son of Downtown real estate investor Ezat Delijani, who bought four of Broadway’s historic theaters—the Los Angeles, the Palace, the State, and the Tower—to prevent their further ruin and, in some cases, threatened demolition.
The 1897 Barclay Hotel was most recently used as a low-income residential hotel. When the property went on the market in 2016, there were about 30 tenants remaining; it is not known if those tenants are still residing in the building.
The Barclay is covered by a 2006 legal settlement that mandates a “no net loss” policy aimed at ensuring that residential hotel units are preserved in Downtown, Barbara J. Schultz of the Legal Aid Foundation of Los Angeles told Curbed when the property hit the market.
According to the settlement, any new owner of the Barclay who wanted to use rooms for anything other than a residential hotel would have to relocate any existing tenants on the property and replace all the units they planned to convert or demolish to change the use of the hotel.
The affordable units the new owner created would have to be rented at 35 percent of the area median income.