Witkoff, PIMCO Default on $400M-Plus in Debt Tied to SoCal Luxury Apartments

While U.S. Special Envoy Steve Witkoff attempts to broker peace in Ukraine, his namesake development firm and its equity partner are wrestling a nine-figure default in Southern California. 

Witkoff, the firm, and Pacific Investment Management Company (PIMCO) defaulted on more than $400 million in debt tied to The Park Santa Monica, a 249-unit luxury apartment community in Downtown Santa Monica, PropertyShark records show. PIMCO owns nearly 99 percent of the property’s equity and “controlled investment decisions,” according to Bloomberg, which first reported the news. Steve Witkoff sold his personal stake in his company for $120 million after his appointment as special envoy earlier this year, and Witkoff’s son Alex Witkoff subsequently took over as CEO of the firm. 

The partners secured an initial debt package of $324 million from Mack Real Estate Credit Strategies in 2021, which increased to $405 million in late 2024. Yet the debt had reached maturity by July, and as of mid-November the total amount owed by the pair had reached nearly $440 million, including interest and late fees, per the default notice. 

The current occupancy rate of the property at 500 Broadway was not disclosed and the reason behind the non-payment was not immediately clear. Representatives for Witkoff did not immediately respond to a request for comment. A spokesperson for PIMCO declined to comment.

The seven-story property, developed in 2022, features 54,000 square feet of ground-floor commercial space partially leased to Trader Joe’s, fertility clinic Kindbody and workout studio Barry’s. Rent prices at the luxury building start at nearly $4,100 for studio units and as much as $19,800 for a seventh-floor, three-bedroom unit. 

PIMCO was founded and is currently based in Newport Beach, Calif., yet Witkoff the firm is far more active in South Florida these days. In May, for example, Witkoff and Access Real Estate landed a $100 million refinancing note from Apollo Global Management toward Dutchman’s Pipe Golf Club, a 200-acre golf resort that includes the 150-key Belgrove Resort & Spa, in West Palm Beach. The previous November, the firm and partner PPG Development secured a $273 million construction loan for a luxury condo and hotel tower in Hallandale Beach. 

Nick Trombola can be reached at ntrombola@commercialobserver.com.