A $54 million commercial mortgage-backed note tied to Mani Brothers’ Playa Vista office portfolio has been pushed into special servicing after the borrower missed payments, turning up the heat on one of the Westside’s better-known landlords. The debt covers two Silicon Beach buildings on Jefferson Boulevard and roughly 194,000 square feet of creative office space.
Servicer Steps In After Missed Payments
As reported by Connect CRE, Morningstar Credit and Trepp flagged the loan and moved it into special servicing after it first became delinquent in February 2026. Servicer commentary says the borrower has been pursuing a modification or forbearance while the special servicer reviews the file and weighs other workout options.
How The Loan Is Built And What Is At Stake
Documents filed with the Securities and Exchange Commission show the mortgage originated Sept. 16, 2019 as a $111 million cross-collateralized loan split into a $54 million A-1 note, a $30 million A-2 and a $27 million A-3. The offering materials list roughly $57 million of additional debt on the properties and an appraisal valuing the portfolio at about $186.65 million, or roughly $963 per square foot. The A-1 note carries an Oct. 6, 2029 maturity.
WeWork Exit Gutted Occupancy
WeWork was the largest tenant at 12655 Jefferson until it vacated in 2022, and Morningstar tracked the portfolio’s occupancy falling to roughly 41 percent after that departure. Recent servicer commentary puts occupancy closer to the high-50s, but the shortfall in long-term tenants left cash flow thin and payments overdue, according to The Real Deal. Mani Brothers did not immediately respond to requests for comment.
Recent Deals Show A Colder Market
Recent Playa Vista trades highlight how office values have reset. Barings paid roughly $150.7 million for the i|o campus in June 2025 and Hines’ Global Income Trust bought the Runway mixed-use complex for about $428.1 million, per industry reporting by CoStar. Those transactions put downward pressure on older appraisals and make refinancing or sales more challenging for assets that have lost anchor tenants.
What Comes Next For Mani Brothers
With the loan now in special servicing, a third-party manager will evaluate workout options that could include a modification, forbearance, a negotiated sale or, if talks fail, foreclosure. As reported by The Real Deal, servicer commentary shows the borrower and lender are in discussions. Countywide office fundamentals remain weak, with CBRE reporting Los Angeles vacancy near 25.5 percent in Q1 2026, a backdrop that will shape any recovery for Mani Brothers’ Playa Vista holdings.
