West Hollywood sues Korman and Brookfield over extended-stay rentals

The City of West Hollywood has fired its latest salvo in a spat with the owners of the 8500 Sunset condominium complex.

The city has sued the owners — Korman Communities and Brookfield Property Group — over short-term rentals at the 190-unit development, according to WeHoville. The parties have been battling it out since mid-2017, when Korman converted the property under its AKA brand into an extended-stay hotel. That type of hotel is banned under the city’s short-term rental ordinance.

In September, the owners filed a claim against the city for $40 million in damages that it said the ban would cost them. That claim was filed a week after the West Hollywood City Council recommitted to its stance that the owner was violating the ordinance, which limits corporate landlords from renting out units for anything less than 31 days at a time.

The most recent suit from the city contends that the owners continue to rent out the property for less than one-month stays. It was filed last month, but wasn’t publicly disclosed; WeHoville found it in court records. The suit is filed against the entity that owns the property, BPREP 8500 LLC.

The fight with West Hollywood lawmakers started shortly after Korman and Brookfield purchased the property from CIM Group and then converted it over to an AKA extended-stay hotel.

They claimed they would comply with the law by renting units in the complex’s 80-unit east tower on a monthly basis, and rent the 110 units in its west tower for longer than 30 days. [WeHoville] – Dennis Lynch