A $54 million loan on a Playa Vista office portfolio landed in special servicing after the borrower, brothers Simon and Daniel Mani missed payments, according to Morningstar Credit and Trepp.
The commercial mortgage-backed securities debt has an October 2029 maturity date but was three months delinquent, as of early April, per Morningstar and Trepp. The latest special servicer commentary via Morningstar noted the lender and borrower are in talks to determine if they can reach a modification or a forbearance, but the lender is looking at other resolution strategies. The Mani brothers said the lender has approved loan modifications, the reason behind the transfer, and the loan is current but still in special servicing.
The loan backs a pair of Silicon Beach offices at 12555 and 12655 Jefferson Boulevard that total about 194,000 square feet. Mani Brothers, Simon and Daniel’s privately-held real estate investment company, purchased 12655 Jefferson for around $82 million from Victor Coleman’s Hudson Pacific Properties in November 2017, according to financial statements. About two years earlier, the brothers purchased 12555 Jefferson for $48.5 million.
There’s another $57 million debt on the portfolio that was never securitized, per the Securities and Exchange Commission filing.
WeWork was 12655 Jefferson Boulevard’s largest tenant until 2022 when it left before its lease expired. The portfolio’s total occupancy plummeted to 41 percent at the time, according to Morningstar, but recent servicer commentary puts occupancy at 57 percent.
The latest appraisal, which is about seven years old, priced the Mani brothers’ Playa Vista offices at $187 million, or $964 per square foot. It would probably have a lower price tag now in line with the latest Silicon Beach trades.
Recent Play Vista deals include Hines Global Income Trust’s purchase of the Runway, a mixed-use spot across the street, for $428 million late last year. Prior to that, Barings bought i|o at Playa Vista, a creative campus for $151 million, from Clarion Partners. The Hines deal — 630,000 square feet of retail, residential and medical — came out to about $680 per square foot. The Barings deal — a 307,000-square-foot workplace campus — came out to around $492 per square foot.
This story has been updated to include a comment from the borrower.
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