Onni’s $384M Loan for Wilshire Courtyard Extended
Loan tied to 1M SF office campus in Los Angeles will be due in 2026.
Vancouver-based Onni Group has secured an extension of a $384M loan on its 1M SF Wilshire Courtyard office campus in L.A.’s Miracle Mile on Wilshire Boulevard.
Natixis is extending the CMBS loan—which was sent to special servicing ahead of its original maturity date in July—until July 2026.
The loan became distressed as Wilshire Courtyard, two six-story brown marble pyramid-shaped buildings that make up one of the largest office campuses in the city, has struggled with half-empty occupancy rates.
Anchor tenant WeWork, which leased almost a third of the campus, vacated the space in 2021. Two other tenants, Mediabrands Worldwide and Skydance Media, are vacating 165K SF later this year.
Sony Pictures has signed a lease for 225K SF in a relocation from Culver Studios that will take place in April.
In October, Onni unveiled plans to build a 45-story residential tower on Wilshire Boulevard. The development at 5350-5376 Wilshire Blvd. will preserve century-old Art Deco-style storefronts in the neighborhood, including an Art Deco building that houses a US Post Office.
According to the developer, the 530-foot-tall glass-sheathed project, designed by DTLA-based MVE + Partners, will reflect the symmetry, geometric lines and repeat patterns of the Art Deco style with layers of protruding balconies.
The tower, to be known as 708 Cloverdale, will be topped with a crown that will encompass five penthouses. The new 45-story tower will feature 419 one- and two-bedroom apartments above 2,700 SF of ground-floor restaurants. It also will include a gym, sky lounge and pool deck.
Onni purchased the 1.4-acre site, which sits between Detroit St. and Cloverdale Ave., for $30M in May 2021. The Canadian company received Transit Oriented Communities incentives from Los Angeles in exchange for its pledge to set aside 47 apartments for low-income housing. The city is planning to build a Wilshire/La Brea subway station in proximity to 708 Cloverdale.
The new residential tower is just one component of Onni’s massive development plans for the Mid-Wilshire area of the Miracle Mile. The residential tower is in proximity to the firm’s redevelopment of the Wilshire Courtyard complex, at 5700 and 5750 Wilshire Blvd., which the company acquired in 2019 from Tishman Speyer for $630M.