Brockman Moves Toward Auction, Roosevelt Next?
DOWNTOWN LOS ANGELES — 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.
Guest on December 27, 2010, at 02:56PM – #1
Do you know if it will be a public auction? also do you know where the auction will take place?
David McBane on December 27, 2010, at 03:14PM – #2
Guest 1 - It will be a public auction (all foreclosure auctions are public) for the entire building, not for the individual units. The public auction will be on the courthouse steps in Norwalk.
BofA has a 99% chance of winning the auction since they will bid the amount of their loan, which must be worth more than the property is worth today. Since BofA will be bidding more than it is worth, no one else's bid will win (most of the time no one even bothers to bid at this stage). BofA will take ownership of the building and then decide what to do with the property. They may try to sell the whole thing off right away or may choose to rent it up and then sell it off or they may choose to sell the individual units either traditionally or by auction.
Anyway that it happens, you will definitely hear about it and get your chance for a unit.
Guest on December 27, 2010, at 04:46PM – #3
I wonder when Bank of America will go bankrupt for all of its inept decisions and constant attempts to defraud the system and public.
Guest on December 28, 2010, at 07:10AM – #4
BofA will never go broke because is backed up by the illuminati...
;)
Oscar.
film rob on December 28, 2010, at 09:33AM – #5
this place is nice, I had a place here before they f@#$ked us. counting the coins, ready to bid.
Downtown Cowboy on December 28, 2010, at 01:16PM – #6
Right above Botega Louie! How sweet would it be to be able to walk downstairs to dinner.
I'm looking forward to these units hitting the market
Guest on December 29, 2010, at 10:16PM – #7
I believe any foreclosure auction would be for the whole building and not individual units. Those of you seeking to live above Bottega Louie may be waiting for a while.... It's much more likely that a company buys this building on the cheap and rents it out for the next decade.
DawnC on January 03, 2011, at 07:00PM – #8
If only I had a few hundred million.
ed rosenthal on January 07, 2011, at 11:11PM – #9
Downtown turn your head in any direction and there is an upside down B of A loan on a building. Poetbroker