Mani Brothers Secures $125M for LA Office Asset

Mani Brothers has secured a $125 million refinancing loan for a West Hollywood, Calif., office building located at 9000 W. Sunset Blvd., according to CommercialEdge information. JPMorgan Chase originated the note for the 144,802-square-foot property.

Previous debt included a CMBS loan in the same amount, issued by LoanCore Capital in 2015. That note matured in April, the same source shows.

The asset has been under Mani Brothers’ ownership since December 2000, when the company acquired it from Zeller Realty Group for $35.5 million. The firm also owns four other office properties on the same street, at 8439, 9200, 9201 and 9220 W. Sunset Blvd.

Completed in 1963, the 16-story property has floorplates averaging 10,344 square feet. Amenities at the tallest building on the Sunset Strip include EV charging stations, 4,500 square feet of retail space, on-site manager, a café and a mailroom.

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In 2007, the property underwent renovations targeting the improvement of ventilation and security systems, as well as the upgrade of each floor’s design features. The tenant roster features Soho House, Ikon Capital Advisors, LD Entertainment, Macino Entertainment Hollywood and LaPolt Law.

Located between West Hollywood and Beverly Hills, the mid-rise is less than 2 miles northeast of Rodeo Drive and within 9 miles northwest of downtown Los Angeles. The property is also near Santa Monica Boulevard, West Hollywood Park and the West Hollywood Design District.

Los Angeles’ office market stabilizes

As of March, the office vacancy rate in Los Angeles clocked in at 16.5 percent, witnessing a minor 10-basis-point increase year-over-year, according to the latest CommercialEdge office report. Meanwhile, the national office vacancy rate rose to 19.9 percent, up 170 basis points over the year.

The metro had more than 1.9 million square feet of office space under construction that month, representing 0.7 percent of stock, on par with the national index. The City of Angels lagged behind Boston (2.4 percent), San Francisco (2.3 percent) and Miami (1.9 percent), but outperformed Seattle (0.6 percent), Manhattan and Washington, D.C. (each at 0.3 percent).

However, Los Angeles ranked fifth nationally for office investment volume, with $475 million in sales year-to-date as of March. Manhattan was once again the undisputed leader, with more than $2 billion in sales, followed by Washington, D.C. ($767 million), the Bay Area ($727 million) and Chicago ($600 million).