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An updated appraisal for Ovation Hollywood, formerly known as Hollywood & Highland, pegged its value at $257M, 24% below its $338M valuation in 2019, when the loan was securitized.
Gaw Capital USA and DJM acquired the property in 2019 for around $320M, Commercial Observer reported at the time.
The mixed-use property moved to special servicing in June ahead of the August 2024 maturity date on a $211.3M CMBS loan secured by the property, according to Morningstar, which reported the new valuation.
The Hollywood Boulevard property holds a mix of retail, event space and offices.
Occupancy was 90% at issuance of the CMBS loan on the property, but it had dropped to 77% in 2023 and was last reported at 69% in December 2024. Morningstar noted that, despite the occupancy slump, the property's 2024 net cash flow improved, surpassing issuance level cash flow by 6%.
Gaw and DJM spent $100M on renovations and updates to the property that were completed in 2023.
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