Mani Brothers Secure $125M Refi From JP Morgan for West Hollywood Office

The owner of the tallest building on Los Angeles’s famed Sunset Strip has landed a new nine-figure refinancing tied to the property, even as the region’s office fundamentals continue to lag.

Mani Brothers secured the $125 million loan from J.P. Morgan Chase, according to CommercialEdge, which first reported the news. Mani Brothers acquired the 16-story, 144,802-square-foot office tower at 9000 West Sunset Boulevard in its hometown of West Hollywood, Calif., for about $35.5 million in 2000.

The new debt on the 1967-built property replaces a $125 million commercial mortgage-backed security loan issued by LoanCore Capital in 2015. Tenants at the property include Jason Woodruff, Realtor, XIX Entertainment and Hollywood Estates. A little over 31,000 square feet is available for lease, according to a listing on CBRE’s website, which would make the property about 79 percent leased.

Representatives for Mani Brothers and for J.P. Morgan Chase did not immediately respond to requests for comment. 

The small enclave of West Hollywood, spanning less than 2 square miles, is dealing with a high office vacancy rate, similar to much of the rest of L.A. County, but to a slightly lesser extent, according to a recent market report by CBRE.

Overall vacancy on L.A.’s Westside (which includes West Hollywood in CBRE’s report) hit 22.7 percent in the first quarter of this year, 100 basis points higher than the previous quarter and up 130 basis points year-over-year. Average asking rents also declined, albeit barely, to $5.56 per square foot — down a penny both quarter-over-quarter and year-over-year. 

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