The Reuben brothers have taken over Witkoff’s WeHo hotel on Sunset Strip.
An entity connected to Steve Witkoff — founder of Witkoff Group in New York, and President Donald Trump’s Middle East special envoy — handed the Edition hotel over to an affiliate of an investment vehicle, Motcomb Estates, used by Simon and David Reuben.
The Reuben brothers, British real estate billionaires, were the foreclosing beneficiary, according to records, and a month later became the substitute trustee, too. The unpaid debt amounted to $211 million, according to a deed in lieu of foreclosure dated April.
Witkoff Group co-developed the trendy 190-key boutique hotel at 9040 Sunset Boulevard, which opened in 2019. By 2021, the Reuben brothers, who were mezzanine lenders, looked to foreclose on the property, The Real Deal previously reported. Witkoff dodged that fate when it landed a $230 million refinancing from J.P. Morgan and Mack Real Estate Credit Strategies (part of Mack Real Estate Group), per a press release.
The Reuben brothers later purchased the J.P. Morgan debt, according to records. Representatives for the Reuben brothers, Mack Real Estate Group and J.P. Morgan did not respond to a request for comment; neither did Witkoff CEO Alex Witkoff.
The Edition brand was conceived by Ian Schrager and Marriott, and the hotel was co-developed by Howard Lorber’s New Valley. The hotel has 48 suites, including two penthouses, and 20 condominiums. It has a fancy restaurant and guests-only rooftop pool.
This isn’t the first time the Witkoff Group has been bitten by distress in Los Angeles. Pimco and Witkoff defaulted on a more than $400 million loan on a luxe apartment complex in Santa Monica. And, it isn’t the first time the Reuben brothers have pursued foreclosure in L.A. The brothers took over multibillion-dollar development Century Plaza after foreclosing on the senior and mezzanine debt.
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