Onni Group has won a reprieve for a $384.3 million loan tied to a 1 million-square-foot Miracle Mile office campus.
The Vancouver-based real estate investor has secured a three-year extension on the loan connected to the Wilshire Courtyard at 5700 and 5750 Wilshire Boulevard, the Commercial Observer reported.
The commercial mortgage-backed securities loan from Natixis, which was sent to special servicing ahead of its expected expiration deadline last July, was extended to July 2026.
The loan fell into trouble after the double-pyramid Wilshire Courtyard, which was 46 percent vacant last year, failed to earn 1.1 times its monthly debt service.
Onni Group, an active developer in Los Angeles, bought the Class A complex in 2019 for $630 million.
The 8.7-acre Wilshire Courtyard, built in 1987, is among the largest office campuses in Los Angeles, and located catty-corner from the La Brea Tar Pits and Museum and the L.A. County Museum of Art. It was renovated in 2017.
It includes a pair of six-story, brown marble office pyramids separated by courtyards on each side of a quiet cul-de-sac.
The stepped complex features 125 tiered outdoor balconies, underground parking and a park with a turtle pond.
WeWork was once a top tenant, leasing nearly a third of the campus. When the co-working firm moved out in 2021, occupancy fell to 54 percent, which is where it remained through last year.
An Onni plan to redevelop the property with two towers containing 3 million square feet of offices has been put on hold.
This year, Sony Pictures signed a lease for 225,000 square feet, starting next April, moving divisions from nearby The Culver Studios.
But two of the top three existing tenants, Mediabrands Worldwide and Skydance Media, will vacate 165,000 square feet of offices when their leases expire this year.
— Dana Bartholomew
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