The 44 Remaining Condos at Shvo's Mandarin Oriental Residences Beverly Hills to Be Sold in Bulk

The remaining 44 condo units at the Mandarin Oriental Residences in Beverly Hills, owned by Shvo's firm, will be sold in bulk. This decision comes after the project's lender, Acore Capital, filed a notice of default. The lender has preserved its right to foreclose due to an outstanding balance of over $200 million. Additionally, the bulk sale includes approximately 6,000 square feet of retail space.

Ownership Group's Strategy and Lender Relations

The ownership group, consisting of New York developer Michael Shvo, Deutsche Finance, and German pension funds, originally secured financing from JP Morgan but opted to market the remaining units in bulk to reallocate their investment resources. This move is aimed at positioning the group to invest in new assets in anticipation of lower interest rates.

Units on Sale

The available units vary from one-bedroom to four-bedroom penthouses, with an average size of 2,600 square feet. These units are being marketed by a Newmark team led by Adam Spies. Although no prices have been announced for the bulk sale, earlier sales at the property averaged over $3,200 per square foot.

Previous Sales and Financial Background

The Mandarin Oriental Residences, completed in May, has sold 10 units thus far. The development was initially financed by a $190 million loan from Acore Capital in 2019, the same year Shvo purchased the property for $130 million.

Challenges in Luxury Market and Other Projects

Shvo's luxury real estate portfolio has faced challenges. A similar Mandarin Oriental project in Manhattan has seen slow sales, with only 14 units sold by June. Meanwhile, in California, Shvo’s team is preparing for the reopening of San Francisco’s Transamerica Pyramid after $400 million in renovations. However, construction delays have led to legal disputes with a potential tenant. In Miami, Shvo's firm has also laid off staff despite ongoing projects in the region.