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CIM Group sells Sunset Strip complex to Korman Communities, Brookfield

Korman plans to convert apartments into luxury extended-stay hotel

8500 Sunset Boulevard (Jay Luchs)
8500 Sunset Boulevard (Jay Luchs)

Pennsylvania-based extended stay hotel developer Korman Communities and Brookfield Property Group will buy CIM’s recently completed apartment complex at 8500 Sunset Boulevard.

The price was not disclosed, but sources previously told The Real Deal that the mixed-use building was valued at roughly $250 million.

Korman, which operates the AKA line of extended-stay hotels, plans to convert the 190 luxury residential units into an upscale extended-stay property, the Los Angeles Times reported.

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Korman already operates an 88-unit AKA on Crescent Drive in Beverly Hills, where rates start at $4,500 a week.

The building has eight multi-level units, 55 two-bedrooms, 118 one-bedrooms and 17 studios. It also includes a swimming pool and a fitness center, according to the Times.

CIM Group will retain ownership of the ground-floor retail, where retailer Fred Segal recently signed a 22,000-square-foot lease with plans to open this fall.

The property is part of a more than $300 million development on the Sunset Strip that will include retail, restaurants and an outpost of the 1 Hotel. [LAT]Subrina Hudson

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