Bank of America Tired of Waiting for Roosevelt Reorganization
Eric Richardson
[Flickr]
While the signage outside the Roosevelt still says Sales Center, the office has been doing nothing but leasing since the project's April bankruptcy filing.
DOWNTOWN LOS ANGELES — Eight months after the 220-unit Roosevelt Lofts entered bankruptcy, Bank of America is tired of waiting for its money.
The bank filed a motion today asking that Judge Geraldine Mund end the Roosevelt's Chapter 11 reorganization, a move that would allow the bank to foreclose its $80 million loan on the property.
"The Court should not allow the Debtor to just sit and prolong this case for an indefinite period of time at the expense of creditors," the bank writes in today's filing.
That would be a blow to Roosevelt Lofts, LLC., which in August filed an updated financial plan that relied on both sales and rental income to complete the building's upper floors and find its way back into the black.
Bank of America doesn't buy the idea that the numbers really pencil out. "There is no reason to believe that the proposed sale of the residential units would generate enough funds to pay creditors," it said. "Thus, there is no reasonable prospect for reversing the Debtor’s loss and of revitalizing the Debtor as a viable business enterprise."
The motion to end bankruptcy, as well as a motion by Roosevelt Lofts asking for permission to sell units, should go before the court in mid-December.
According to Roosevelt Director of Leasing Randelle Green, 35 units are currently occupied in the building, up from 25 at the beginning of October.
The building is just one of three Downtown residential properties that Bank of America has a chance of soon owning. It stands poised to take over the Brockman Lofts, at 7th and Hope, as part of Chapter 7 liquidation proceedings on that project. It is also opposing a reorganization plan for the Title Guarantee Lofts, at 5th and Hill, a project on which it is owed approximately $24 million.
Downtowner on November 24, 2009, at 03:46PM – #1
Is BofA crazy? What are they going to do with these buildings. They can't even run a bank, how are they going to run the properties?
Matthew on November 24, 2009, at 04:31PM – #2
The title of this post suggests we're talking about so much more than a single property. Here's to hoping Bank of America gets a wholesale Rooseveltian reorganization.
Christopher on November 27, 2009, at 02:53AM – #3
B of A can go to hell. God I hope that the judge rules in the favor of the developers. This is just more unscrupulous avarice by a bank that was bailed out by taxpayers not less than a year ago. How obnoxious.
Downtown Cowboy on November 28, 2009, at 04:45PM – #4
The sooner the court steps in and puts an end to this the better it will be for everyone! They need to turn the project over to whomever can SELL the units. They don't need to be rented, they need to be sold. The overwhelming response of the Market Lofts shows there is interest in downtown at the right price. So price these at market prices and get them sold. I would love to see all these vacant buildings down here with owners in them - contributing to the life of the area.
nanorich on November 29, 2009, at 10:51AM – #5
Yeah...renters bring down the tone of places, don't they!
Shell owners are so much better for an area!
Joe on November 29, 2009, at 11:20AM – #6
Vacancies abound downtown and many recent downtowners are rebuking the live-work-play mantra loft-lords shove down throats.
Don't hold your breath hoping these units will be sold. There's a growing transparency of what life is really like in this 20 square block area people think is "downtown" and the report card isn't getting the most favorable marks.
Lee Bob on November 30, 2009, at 06:35AM – #7
I think what we're seeing downtown is a natural transition in the profile of the downtown resident. The "live-work" residents are being replaced by the more traditional resident. Downtown is changing from being a frontier to representing a more traditional market. The units are there, and will continue to grow, so they will be occupied. It's just a question of by whom?