LOS ANGELES, CA--Nine months after entering bankruptcy, Roosevelt Lofts (top right photo) today got a judge's permission to proceed with the sale of units, according to Los Angeles-based BlogDowntown.
Eric Richardson of BlogDowntown reports Downtown Los Angeles is preparing for another round of auction fever.
Judge Geraldine Mund approved the Roosevelt Lofts' petition to become the latest Downtown condo property to turn to a one-day sale in an attempt to move a large chunk of units. The auction, to be conducted by Kennedy Wilson, is proposed to include 65 units and likely to take place on February 14, 2010.
Unit pricing has not been released, but project's reorganization plan assumes an average sales price of $425,000.
According to today's order, floors nine and ten must be completed by March 31, with floors 11 and 12 to follow by June 30.
Today's ruling is good news for a project that has been stuck in limbo. When the Roosevelt Lofts filed for Chapter 11 reorganization on April 13, developer Milbank Real Estate Services put out a statement saying that sales would continue "without interruption."
Nine months later, no units in the building have been sold and the project has turned to short-term leasing as a way to generate some cash flow.
The motion to sell units was opposed by Bank of America, which has the construction loan on the property and has filed to end the bankruptcy case, which would allow it to start foreclosure proceedings. That motion is still set to be heard on February 2, but today's order seems to make clear that Judge Mund views the project's plan for reorganization as valid.
He expects that number to nearly double in the upcoming months as an additional 305 units hit the market at 705 W. 9th -- another building currently navigating bankruptcy -- 655 Hope and Santee Lofts.
Kennedy Wilson recently operated an auction for nearby Market Lofts, (bottom right photo) which sold its last 55 units in a one-day event on November 14.
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