UPDATED, Friday, May 12, 2017, 4:30 p.m.: Lenders recently began foreclosure proceedings on a loan attached to the historic Standard Oil Building at 605 W. Olympic Boulevard in Downtown Los Angeles, The Real Deal has learned.
The building’s owner defaulted on the $13.47 million CMBS loan package, which is now in foreclosure, said a spokesperson for the real estate analytics firm Trepp.
The securitized loan was originated by Eurohypo AG a decade ago and was classified as non-performing beyond maturity as of February, according to Trepp data.
The building’s owner is an entity connected to Shahriyar Akhlaghfar, records show. Fashion mogul Marc Bohbot, who is behind fashion brands like XOXO and Bisou Bisou, was formerly part of the ownership partnership, but sold his stake to Akhlaghfar.
Akhlaghfar could be reached for comment.
The 102,587-square-foot building, a designated city landmark that was designed by George Kelham, dates back to 1924 and sits just a few blocks from the Staples Center, between Hope and Flower Streets. In recent years, the property has seen a drop off in occupancy, from nearly 100 percent to just 55 percent, leaving the owners unable to pay the debt, according to Trepp.
The property’s largest tenant is the Fashion Institute of Design & Merchandising , which occupies 34,991 square feet.
Correction: A previous version of this story incorrectly stated that Marc Bohbot was part of the ownership partnership. He sold his stake to Shahriyar Akhlaghfar.