Beverly Hills Project Nabs Path to $550M in Bonds

Cain International and OKO Group got the green light from the Beverly Hills City Council in the wee hours of Wednesday morning to designate a Community Facilities District that could allow One Beverly Hills to receive up to $550 million — twice the city’s annual operating budget — in bond financing.

The council would still have to approve future bond issuance within the specific area, which the developers of the mixed-use project expect to seek closer to the project’s 2028 completion.

“It’s a good deal for One Beverly Hills,” Vice Mayor John A. Mirisch, who voted against the project in 2021, said at the meeting, which started at 7 p.m. on Tuesday. He added, “Now I do feel very comfortable that this is a good deal for the city.”

Of the $550 million, $390 million would be used to fund public improvements and $160 million would be allocated for “future city council to fund major repairs or enhancements to the public improvements decade from now without needing to revisit voter approvals,” according to a council staff presentation at the meeting.

The special taxes would be levied on properties within the 17.5-acre project site at 9850, 9876, 9900 and 9988 Wilshire Boulevard between Wilshire Boulevard and Santa Monica Boulevard, slated to include an Aman resort, two condominium towers and the renovation of the neighboring Beverly Hilton hotel. The revenue would then be used to repay the bonds.

“The CFDs really act like takeout financing,” Larry Green, managing director at Cain, said at the meeting. “It is not a gift or a subsidy. There is no financial risk to the city, and there is no impact to the existing taxpayers outside of the CFD.”

Cain International and OKO Group are targeting 177 Aman-branded residences, of which 20 are under contract, the project’s representatives said at the council meeting.

One Beverly Hills, which is already under construction, also calls for 4 acres of open space reserved for condo residents and 4.5 acres open to the public. Amenities include a conference center, retail and dining space.

CFDs were established by the state’s Mello-Roos Act of 1982. They are formed when property owners in a geographic area agree to impose a tax on property to fund infrastructure improvements or services.

“CFD is a tool that’s customarily used for this type of investment, and it allows us to borrow this money and refinance these improvements at a lower rate than what we could get through a traditional loan,” Green said.

Earlier this year, Cain and OKO secured $300 million in mezzanine financing for the project from Vici Properties. In 2024, they reportedly nabbed $2 billion in financing from a group of lenders led by a $500 million senior loan from JP Morgan.

One Beverly Hills was approved by the City Council in 2021. The developers announced the groundbreaking in February 2024 and the project is expected to be completed in 2028.

The site was once occupied by a Robinsons-May department store and gas station.