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A $54M loan backed by two Playa Vista office properties has gone to special servicing after the borrowers, brothers Simon and Daniel Mani, missed payments.
The debt was set to mature in October 2029, but the borrowers had missed three months of payments, The Real Deal reported. The lender was not disclosed.
The properties at 12555 and 12655 Jefferson Blvd. total about 194K SF and were purchased in 2015 and 2016, respectively, by the Mani brothers, according to TRD. They paid roughly $49M in March 2015 for 12555 Jefferson and approximately $80M in November 2016 for 12655 Jefferson, property records show.
There’s also $57M in additional debt on the portfolio that was not securitized, according to TRD.
WeWork was the largest tenant at 12655 Jefferson Blvd. until 2022, when it vacated before the term of its lease, plunging occupancy at the two-building portfolio to 41%. Occupancy has since risen to 57%.
A roughly 7-year-old appraisal of the two building, the most recent available, places their total value at $187M, or $964 per SF. Neighboring comparable properties, like the two-building office in Playa Vista purchased by Barings for $151M from Clarion Partners, were closer to $492 per SF.
Special servicer commentary noted the borrowers and lender are working to see whether a modification or forbearance is possible, but the lender is considering a variety of resolution strategies, according to TRD.
The borrowers told TRD the lender has approved loan modifications and the loan is now current, though still in special servicing.
Overall vacancy in Los Angeles' office market in Q1 2026 rose to 25.5%, an increase of 20 basis points quarter-over-quarter and 120 basis points year-over-year, according to CBRE.
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