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8500 Sunset’s conversion to extended stay hotel might be illegal

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The building’s new owners may need to persuade the City Council to change the rules for them

A December 2016 photo of the project at 8500 Sunset. Photo by Jenna Chandler

A plan to turn a new 190-unit building on the Sunset Strip into an extended-stay hotel might be in trouble. WeHoville reports, the planned conversion from condos might not be permitted under West Hollywood city law.

West Hollywood City Attorney Mike Jenkins tells WeHoville that using apartments, condos, and houses as corporate housing is not permitted in West Hollywood. (Corporate housing here means when a company long-term leases residences and then lets its employees use those residences for short stays while on business, WeHoville says.) West Hollywood has also outlawed using residences for short-term rentals.

8500 Sunset was originally planned as condos, but it sold recently to a company planning to turn it into an extended stay hotel.

Jenkins added that the new owners of 8500 Sunset, Korman Communities, did not consult the city about their plans for the property before buying it. In order to proceed with the extended-stay hotel, Korman Communities will have to persuade WeHo’s City Council to overturn its corporate rentals ban, says WeHoville.

“If the new owner is looking to change the residential component to hotel, based on my experience ... it will certainly be an interesting conversation,” City Councilmember Lauren Meister told WeHoville.

It’s unclear if or when Korman will speak to the city council on the matter. The city clerk tells Curbed the City Council has not yet scheduled a discussion about it.

The 8500 Sunset complex is part of a much larger Sunset|La Cienega development that was developed by CIM Group. CIM recently sold the hotel component, which was planned as a James hotel and will now open as a 1 Hotel.