A $211.3 million commercial mortgage-backed securities (CMBS) loan secured by the former Hollywood & Highland entertainment complex in Los Angeles has been placed into special administration due to an imminent default on the maturity of the loan, according to Trepp.
The five-story property, set to rebrand as Ovation Hollywood in 2022, had been grappling with occupancy and cash flow issues and was facing an August maturity date on the NCMS 2019-FAME deal that Natixis initiated nearly five years ago.
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The 462,827-square-foot retail development, owned by Gaw Capital USA and DJM, had an occupancy rate of 77% for 2023, according to Trepp.
The loan's debt service ratio was 0.86x as of July 31, 2023, down 49% from 1.69x at the end of 2022, according to data from CRED iQ.
The property, located next to Los Angeles' tourist attraction, the Hollywood Walk of Fame, was valued at $338 million when the loans were securitized in 2019, Trepp said. Gaw Capital USA and DJM acquired the property in 2019 for about $320 million.
Gaw Capital USA and DJM did not immediately respond to requests for comment.
Andrew Coen can be reached at acoen@commercialobserver.com.