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$110 Million Sale of 705 W. 9th Approved

By Eric Richardson
Published: Monday, April 19, 2010, at 01:42PM
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 should change hands this week. Judge Kathleen Thompson today approved a $110 million deal for the 35-story 705 W. 9th, which has sat empty since entering bankruptcy in September.

Buying the nearly-finished tower is Watermarke Properties of Corona. The company has not specified whether it plans to sell the 214 units off as condos or run them as a rental property.

blogdowntown was first to report the pending sale last Wednesday, but talks between the two companies have been ongoing since early this year. The sale agreement requires that the sale close within five business days of Thompson's approval.

Also approved today was a linked settlement agreement between Meruelo Maddux and Canyon Partners, which had lent the developer $84 million for construction. The developer will pay $86.5 million from the sale proceeds to settle that claim.

Meruelo Maddux declined to comment on today's approvals.

The $110 million purchase prices the residential units at roughly $420 - $430 per square foot.

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