Jamison Seeks More Rent Money

Jamison is after more rent money.

In an early June complaint, the landlord claimed a tenant at its Koreatown mall, Handhin Pocha, was late on the rent. The family company said the comfort food spot at its City Center on 6th owed $71,250 — and Jamison wanted that, plus $965 per day, starting June 1.

Now, in the latest suit, Jamison accused what appears to be a clothing store located in the same mall, Moii, of owing about $27,000. This time the landlord wants that, plus $168 a day beginning July 1. A representative for Jamison did not immediately respond to a request for comment, and the owners of Moii could not be reached.

The $50 million loan on the mall had a stint in special servicing. The firm, in January, called it “a strategic decision in an effort to obtain an extension to work out a refinance.” A couple months later, it was out of special servicing. Morningstar Credit noted the debt was paid off, and without a loss.

Turns out Jamison secured that refi. The company landed another loan via Wells Fargo, per documents dated late March — replacing the $55 million German American Capital Corporation loaned it back in 2015.

The landlord still has a number of loans on downtown and Koreatown real estate, sponsored by the family patriarch, Dr. David Lee, that are in special servicing. The special-serviced-debt amounts to around $170 million, per our analysis using Morningstar data. But Garrett Lee, who recently took the corner office, after his sister Jaime Lee stepped down, may be cleaning up the balance sheet.

Battle scars

It isn’t only landlords clawing for their money — it’s lenders and special servicers, too.

Metlife vs. Rockpoint: The lender claims the private equity outfit is in default on an around $164 million loan, after it failed to pay back an about $2 million protective advance to pay real estate taxes. But Metlife doesn’t just want its cash back — it wants a receiver to take over, and it’s about to play the foreclosure game.
Rialto vs. Redcar: The special servicer accused the developer of defaulting on a loan on creative offices in Chinatown, after missing payments, and owing about $15 million. Rialto is calling for a receiver and foreclosure.

LED drama

The California Post recently wrote a story, headlined: “LA Graffiti Tower developer has insidious plot to make insane cash before tackling eyesore: Insiders.” Dr. Kali Chaudhuri’s “true goal is apparently to switch on the giant digital billboard that wraps around the ugly structure’s base — a move that would net him tens of millions dollars before he even begins to tackle the mess above it,” per the Post.

In the City of Los Angeles’ objection to Chaudhuri’s KPC and one-time general contractor Lendlease’s $470 (mostly) credit bid for the incomplete complex, which KPC only came into the mix via its purchase of another creditor’s claim, the LED drama is teased. The city said the proposed purchaser’s plan cannot be approved as currently proposed. Rather than extensive and important information on financing, closing certainty, development phases and more, the limited information it received (verbally, apparently) included “pursuing full operational capacity of the previously entitled 700-foot LED signage,” the documents read.

Inklings of a lease

In other downtown news, according to servicer commentary via Morningstar, EY Plaza inked a lease. The servicer commentary only says: “Receiver recently executed a lease for the full second floor, bringing occupancy to just under 64 percent,” so it is unclear who the tenant is, and whether it’s a new or renewal. The receiver did not respond to requests for information. EY Plaza is the downtown office tower that has seen two deals fall apart and a broker switch-up, post-Brookfield’s $275 default and receivership.

Speaking of downtown deals and defaults, read the latest: “Can Downtown LA make a comeback?” here. You’ll hear from two landlords who have very different takes and more.

Bonus

Now to the fun news. Sean Burton’s Cityview celebrated its grand opening of Apollo, 265 apartments in Los Angeles’ South Bay, near SpaceX. Gardena’s mayor was in attendance.

Relatedly, Burton previously told me he couldn’t have done it in the City of Los Angeles because of its so-called mansion tax, a.k.a Measure ULA. Burton said it’s “redlined” the city. Unfortunately for the real estate world, a measure that would have killed the tax was pulled off the November ballot, and another that’s a sort of compromise, may not make it any further.