Dozens of condominiums in Beverly Hills went on sale en masse on Wednesday after an investor group led by Michael Shvo defaulted on a $200 million loan linked to the properties.
Some 44 condos in the Mandarin Oriental Residences Beverly Hills at 9200 Wilshire Boulevard went up for bulk sale on Sept. 4 after the project’s lender filed a notice of default, Bisnow reported.
The 54-unit, six-story complex was completed in May and has sold 10 condos for an average of more than $3,200 per square foot. Prices in spring of last year ranged from $3.7 million to $11.2 million, according to The Real Deal.
Broker Adam Spies of Newmark is overseeing the sale in coordination with the lender. The prices for the condominiums were undisclosed. The 10 condos sold were worth a combined $69.7 million, according to the brokerage firm.
Acore Capital filed the default notice last month, reserving its right to foreclose on the property. The notice says the Shvo-led group owed just over $200 million.
The Mandarin Oriental Residences are owned by New York-based Shvo’s namesake development firm, Deutsche Finance and an unidentified group of German pension funds.
The bulk sale includes 6,000 square feet of ground-floor shops.
“The ownership group had arranged financing with JP Morgan but chose instead to work with the lender to market the remaining units in a bulk sale,” an unidentified spokesperson for the Shvo-led consortium told Bisnow in a statement.
The bulk sale “allows the partnership to re-allocate investment resources to purchase new income producing assets, in anticipating (sic) of a lower interest rate environment.”
The condos for sale average about 2,600 square feet and range from one-bedroom units to four-bedroom penthouses.
In 2019, Michael Shvo bought the property for $130 million, public records show.
At the same time, Shvo and Deutsche Finance secured a $190 million loan from Acore Capital for the condo project south of Wilshire Boulevard and east of the city’s Golden Triangle and its world-famous Rodeo Drive luxury shopping corridor.
Shvo is known for super luxe projects, but reports from across the country indicate the buyer pool for such properties is shallow, according to Bisnow.
A 69-unit Mandarin Oriental-branded project in Manhattan that Shvo and partners acquired last year had sold only 14 units as of June, Bisnow reported. Two more were under contract at that time.
In San Francisco, Shvo is getting ready to reopen the Transamerica Pyramid on Sept. 12 after a $400 million renovation aimed at drawing tenants to its trophy offices. An elite social club and would-be tenant has sued the ownership group, alleging construction delays.
In Miami, Shvo’s firm laid off staffers despite having two projects in progress in the market, Bisnow reported in August.
— Dana Bartholomew
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