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Brockman Moves Toward Auction, Roosevelt Next?

By Eric Richardson
Published: Monday, December 27, 2010, at 01:14PM
Brockman Building Dakota Smith / Curbed LA [la.curbed.com]

Brockman Building, 530 W. 7th

A judge last week gave Bank of America permission to foreclose on the Brockman Building at 530 W. 7th, nearly 21 months after developer West Millenium first filed for Chapter 7 bankruptcy proceedings.

The move allows the bank to move forward on an auction for the property, one of Downtown's slowest residential conversions. The developer first applied for a permit to convert the former office building to 76 live/work lofts seven years ago, on December 4, 2003. Those units were given their Certificate of Occupancy on November 8.

The property's auction sale could come as soon as December 30.

Just a few blocks west on 7th Street, developer Milbank Real Estate Services remains locked in a fight with Bank of America over the fate of the 222-unit Roosevelt Lofts. That property entered Chapter 11 bankruptcy proceedings on April 13, 2009.

At a January 11 hearing, the bank will argue that it should be granted a "relief from automatic stay" that would allow it to foreclose on the property. In a recent filing, the bank argued that Milbank's strategy in operating Roosevelt Lofts, LLC, was to "delay the bankruptcy process and pray for a miraculous turnaround in the Downtown residential real estate market."

The building started leasing residential units in 2009. In January it was granted permission to auction up to 65 units, but Bank of America contends that required construction work has yet to be completed.

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