Two partially-built, luxury residential mansions located in Beverly Hills, California.
After $30 million was invested into the properties, significant change orders and cost overruns lead to the borrower defaulting on its loan with the lender. Mid-constructed properties were exposed to the elements, and a Receiver was appointed and provided the authority to continue construction and market them for sale.
This complex project involved two 11,000 square foot luxury residential mansions located in Beverly Hills. The partially built properties were exposed to the elements with unfinished roofs, no walls, and unprotected structural beams. Moreover, construction had stalled for 8 months, and permits and insurance were on the precipice of expiring. The general contractor and subcontractors were owed millions of dollars for work already performed.
Through long-standing relationships and experience as a developer, DWC was able to remobilize contractors on the properties, preserve the invaluable building permits, renew a sophisticated owner-controlled insurance program, and negotiate with the general contractor and multiple subcontractors to finish work.
During this highly-involved and complicated process, the Receiver led parallel tracks engaging top local brokerage firms to sell both properties via a Receivership sale and maximize recovery to the estate. The Receiver was able to generate multiple offers for the half constructed properties – a very unique and sophisticated asset to market – and the properties were successfully sold for $27 million generating a significant recovery for the lender.
Superior Court of the State of California, Los Angeles County
Los Angeles, CA
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