CIM suing SBE Entertainment for unpaid rent at Hollywood eatery

Umbrella Hospitality’s Lono Hollywood has skipped payments since April 2020, filing claims

CIM Group’s Avi Shemesh and Lono Hollywood at 6611 Hollywood Boulevard (Google Maps)
CIM Group’s Avi Shemesh and Lono Hollywood at 6611 Hollywood Blvd (Google Maps)

CIM Group is suing SBE Entertainment over skipped rent at a Hollywood restaurant, alleging the nonpayment stretches back to the start of the pandemic.

CIM is seeking $221,300 in rent and maintenance fees for Lono Hollywood, according to a suit filed last week in Los Angeles County Superior Court. The lawsuit marks at least the fourth time since the pandemic that CIM has sued tenants for unpaid rent.

The tiki bar and restaurant at 6611 Hollywood Boulevard is operated by Umbrella Hospitality Group, which has been subleasing the space since 2017, SBE founder Sam Nazarian said in an interview. Umbrella is not a defendant in the suit; Lono Hollywood has been closed during the pandemic.

SBE is still listed as the guarantor, and the suit alleges the company hasn’t paid its $10,000 monthly rent and maintenance charges for the 4,850-square-foot restaurant since April 2020.

On Friday, Nazarian said “this will be resolved in 24 hours.” He added that SBE “has a long-standing relationship with CIM.”

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CIM chief legal officer Jordan Dembo, in a Friday email response to The Real Deal, said the landlord was in discussions and “believes that the suit filed for nonpayment of rent will be resolved.”

L.A.-based CIM served SBE with a notice in June, demanding $183,000 in rent within three business days, according to the suit. Should the case not go to trial until next year, CIM said it would ask for an additional $159,500 to cover that period, according to the filing.

SBE took over the lease on the property in 2011. In 2016, SBE agreed to extend its lease through 2027, the suit says. SBE has subleased the space to Umbrella since 2017.

CIM’s previous suits include one it filed in May against Clear Source Capital. It claimed the firm owed $52,000 on its 1,708-square-foot office at 22912 Pacific Park Drive in Aliso Viejo, court documents show.

In August 2020, CIM sued exporter Auchtel Products seeking $30,600 in rent on a 785-square-foot office at 11620 Wilshire Boulevard. It also sued Bac To Health, claiming the company didn’t pay $22,800 for its office space at 11600 Wilshire Boulevard.