Onni Group Gets 3-Year Extension on Big Loan Tied to Wilshire Courtyard Offices in LA
By Greg Cornfield August 25, 2023 4:00 pm
reprints
Landlord and active developer Onni Group has secured a significant extension for $384.3 million in financing tied to the prominent Wilshire Courtyard office campus in Los Angeles’s Miracle Mile.
The commercial mortgage-backed securities loan from Natixis has been extended to July 2026, according to Trepp. This comes after the financing was sent to special servicing earlier this year due to the asset failing to earn 1.1 times the monthly debt service.
Last July, the maturity date was missed and it took several months before a 12-month extension was executed, per Trepp.
The two-building Class A Wilshire Courtyard is in the heart of Miracle Mile near Museum Row, across the street from the La Brea Tar Pits and Museum. It spans more than 1 million square feet at 5700-5750 Wilshire Boulevard. It was built in 1987 and renovated in 2017.
Canadian-based Onni Group acquired the property for $624.9 million in 2019. WeWork was once the top tenant, leasing nearly a third of the campus. When the coworking firm departed in 2021, occupancy dropped to 54 percent, which is where it remained in 2022, according to Trepp.
In 2021, Onni Group filed plans to more than double the square-footage with a major redevelopment featuring two high-rise buildings slated to begin in two years. However, the property faces all the familiar post-pandemic headwinds in the office market, as well as rising interest rates and declining commercial real estate values.
At the start of 2023, Sony Pictures signed a lease for 225,239 square feet starting in April 2024, but two of the top three existing tenants — Mediabrands Worldwide and Skydance Media — are set to vacate 165,000 square feet of space when their leases expire this year.
Gregory Cornfield can be reached at gcornfield@commercialobserver.com.
