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$110 Million Condo Sale Pending at 705 W. 9th

By Eric Richardson
Published: Wednesday, April 14, 2010, at 06:45PM
705 W. 9th blogdowntown

The 35-story 705 W. 9th has sat empty since September, when developer Meruelo Maddux filed for Chapter 11 bankruptcy.

Downtown's tallest residential tower has sat empty since developer Meruelo Maddux declared bankruptcy late last year, but the 35-story structure could soon be revived if judge Kathleen Thompson gives her approval next week.

Watermarke Properties of Corona has agreed to purchase the building from Meruelo Maddux for $110 million in a plan that appears to have the backing of the building's lender.

Update (Monday): Judge Kathleen Thompson this morning approved the building's sale.

The developer will pay Canyon Capital Realty a fixed payment of $86.5 million to settle its claims from an $84 million construction loan.

That money will come from the purchase, which is required to close within five business days of Thompson's approval. The sale agreement was first signed in February, and Watermarke has placed $5 million in escrow.

Both the sale motion and the settlement motion were filed with the bankruptcy court yesterday.

Meruelo Maddux had previously sought the court's approval to auction off some of the building's 214 units as condos. In a declaration attached to the sale motion, CEO Richard Meruelo said that several buyers came forward when the company put the whole structure on the market.

The hearing on the sale motion and the settlement agreement will be held on Monday, April 19, at 9:30am.


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