Loan Backed By Former Hollywood WeWork Moves To Special Servicing
A $21.7M loan secured by a Hollywood office property has been transferred to a special servicer for imminent default after loan payments fell 60 days delinquent, according to a report from Morningstar Credit.
The loan is secured by the roughly 82K SF office property at 7083 Hollywood Blvd. near La Brea Avenue that WeWork left in 2021.
Although WeWork's departure caused occupancy to drop to 16%, a 2022 deal signed with coworking company Industrious for a portion of the vacated space boosted occupancy at the building back up to 51%, Morningstar reported. Commercial Observer first reported that the loan moved to special servicing.
Public records show the owner of the building is an entity controlled by New York-based Vanbarton Group. Vanbarton acquired the building in 2017 for $42.3M, the Los Angeles Business Journal reported at the time.
Newmark listed the property for sale in September 2023, including the assumption of the loan that has fallen delinquent. The loan has a 4.14% interest rate and is slated to mature in 2025, The Registry previously reported.
Representatives for Vanbarton didn't immediately respond to a request for comment from Bisnow.
