(Bloomberg) -- JPMorgan Chase & Co. is leading a $2 billion financing package for an ultra-luxury development under construction in Beverly Hills. 

The funding would enable One Beverly Hills — a project with as many as 200 residences, a 78-key hotel and a spa club operated by Aman Group — to open by 2028, when Los Angeles hosts the Olympics. JPMorgan is providing a $500 million senior loan, according to a statement by the developers Wednesday that didn’t name the other lenders.

The deal comes as many banks have retreated from commercial real estate. Higher interest rates and construction costs have cut into profitability for lenders and raised the risk of loan defaults.  

“We’re hopeful we’ve gotten through the worst of the rate rises and that we’ll see rates going our way during the course of this project,” Jonathan Goldstein, chief executive officer of Cain International, the project’s co-developer, said in an interview. “It’s best to keep the momentum going on a site that’s unique like this.” 

Other partners in One Beverly Hills are Todd Boehly’s Eldridge Industries, Alagem Capital Group and Vlad Doronin’s OKO Group. The new loans replace and supplement $500 million in financing from 2021 that was provided by Aareal Capital Corp. and Goldman Sachs Group Inc. 

A representative for JPMorgan declined to comment.

The financing will also pay for renovations at the nearby Beverly Hilton, owned by Cain, Eldridge and Alagem. The hotel, which opened in 1955, hosts the Milken Institute’s annual global conference and the Golden Globe Awards, among other events.

A groundbreaking ceremony for One Beverly Hills was held in February, nearly two decades after developers first envisioned a luxury development on the site. The land passed through a series of owners, including Christian and Nick Candy, Carlos Slim and Dalian Wanda Group Co., before the current partners acquired the site in 2018.

--With assistance from Hannah Levitt.

©2024 Bloomberg L.P.