Korman and Brookfield’s Sunset Strip plans could be derailed by WeHo law

City ordinance prohibits use of apartments as corporate housing

Rendering of the project at 8500 Sunset Boulevard (Credit: Jay Luchs)
Rendering of the project at 8500 Sunset Boulevard (Credit: Jay Luchs)

Korman Communities and Brookfield Property Group may hit a roadblock in converting CIM Group’s former West Hollywood residential project into an extended stay hotel.

West Hollywood City Attorney Mike Jenkins told Wehoville this week that the plan would violate a city ordinance prohibiting the use of apartments, condos and houses as corporate housing for fewer than 31 days at a time.

Jenkins said the landlords would have to convince local council members to alter the rules if they wanted to go ahead with the conversion.

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Korman and Brookfield acquired the two buildings at 8500 Sunset Boulevard, which are part of the larger Sunset La Cienega development, from CIM Group earlier this month for an undisclosed sum, though sources valued the properties at around $250 million.

Sunset La Cienega has been in flux in recent months. Initially, the hotel portion of the $300 million development was to be branded as the James Hotel, but those plans were ditched when Barry Sternlicht’s Starwood Capital acquired that portion of the project for $280 million in June. Now the 286-room hotel will be branded as a 1 Hotel.

Original plans for the residential component called for 190 units.[Wehoville]Cathaleen Chen