Hilton & Hyland’s landlord wants the Beverly Hills-based brokerage out of the building.
A limited liability company with ties to Standard Oil Investment Group alleged in Los Angeles County Superior Court early in May that Hilton & Hyland owes it over $650,000 in back rent and more than $65,000 in late fees. The building owner is also asking for an unspecified amount of attorney’s fees, according to the court filing.
Canon Luxury Buildings LLC is suing for unlawful detainer, which is the first step required in evicting a tenant.
A case management conference has been set for Sept. 29.
The LLC suing the brokerage is managed by Standard Oil Investment Group chair Marc Bohbot, the fashion designer behind XOXO and Bisou Bisou, and Steven Bohbot, according to state filings.
Steven Bohbot, who serves as Standard Oil Investment’s CEO, and Justin Sobodash, an attorney for Canon Luxury Buildings, did not immediately respond to a request for comment late Thursday.
“We are aware of the action taken by the landlord and are responding appropriately,” Hilton & Hyland managing director Steve Katz said in a statement to The Real Deal Thursday.
The building’s landlord tapped independent broker Brandon Cohan to quietly begin marketing the 18,000 square feet of second-floor space in the building on Wednesday as questions swirl around the brokerage’s future, which has seen its agent roster dwindle in recent years.
When Hilton & Hyland moved into the Canon Drive building, the company reported having more than 100 agents and staff members. As of Thursday, the agent headcount sits at 40, according to California Department of Real Estate records.
It’s unclear if Hilton & Hyland, led by owner and chair Lori Hyland, is attempting to work out a deal with the landlord or has plans to relocate.
There was still plenty of time left under terms of the lease agreement.
Hilton & Hyland inked a deal for a 10-year term at its lone office on Oct. 27, 2015, according to the court filing, although it didn’t move into the building until three years later. The brokerage agreed to pay $164,775.54 per month in rent.
Brokers are required to have a physical address in the state to conduct business, according to the DRE’s website. Post office boxes and private mailboxes do not count.
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