Shvo’s Beverly Hills Condos For Sale After Bankruptcy Notice
By Nick Trombola September 4, 2024 5:06 pm
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The majority of the units at a luxury condo building in Beverly Hills are hitting the market after the building’s financier posted a default notice on a nine-figure loan tied to the property.
New York-based luxe developer SHVO, along with fellow owners Deutsche Finance and a gaggle of German pension funds, in August defaulted on roughly $200 million in debt tied to the Mandarin Oriental Residences Beverly Hills, a 54-unit condominium at 9200 Wilshire Boulevard. Bisnow first reported the news.
Although the owners had reached a refinancing deal with J.P. Morgan, a Shvo spokesperson told Bisnow, they instead chose to market 44 of the units, which had not yet been sold, along with roughly 6,000 square feet of retail space as a bulk sale. That sale will be overseen by an Adam Spies-led Newmark (NMRK) team, along with lender Acore Capital, the spokesperson said.
Shvo Chairman and CEO Michael Shvo bought the property for development in 2019 for $130 million, with Shvo and Deutsche Finance securing a $190 million construction loan from Acore that same year, per property records. The building officially opened in late 2022, with the price of units starting at a chill $3.6 million.
Representatives for Shvo did not immediately respond to requests for comment. A spokesperson for Acore declined to comment.
The Beverly Hills property isn’t the only Mandarin Oriental-branded building Shvo and partners have had under their wings. The group owns a 69-unit Mandarin Oriental Residences Fifth Avenue at 685 Fifth Avenue in New York City, known as the former headquarters of Gucci. Shvo and partners bought the building in 2018 for $135 million, converting its upper floors from offices into ultra-high-end apartments.
However, there’s trouble in paradise on Fifth Avenue as well, as it turns out. Only 14 units there have been sold so far, according to Bisnow, and at least one of the buyers isn’t satisfied with their purchase. Residents John and Diane Goodman sued Shvo earlier this year, claiming a number of construction defects in their $6.1 million one-bedroom.
Nick Trombola can be reached at NTrombola@commercialobserver.com.
