SCI-Arc Campus Part of Ten Property Settlement Agreement between Meruelo Maddux and Lender
Eric Richardson
SCI-Arc occupies a quarter-mile long building rebuilt from L.A.'s original 1907 Santa Fe Rail Freight Terminal.
DOWNTOWN LOS ANGELES — SCI-Arc's quarter-mile-long campus is changing hands as one of ten Downtown properties involved in a settlement agreement approved today between bankrupt property owner Meruelo Maddux and one of its largest investors.
Seven properties, including the architecture school's campus and part of the parking lot that neighbors it, will go to Legendary Investors Group under the terms of the agreement. In return, Legendary will release its claims on three other properties in South Park.
The SCI-Arc site should change hands again quickly, however.
The school had reached a deal with Meruelo Maddux to purchase its building and part of the adjacent lot one year ago, but had been unable to move forward on the deal while the bankruptcy case continued. Legendary has told the court that it will honor the terms of the agreement, under which the school will pay $23.1 million for 4.75 acres and its 100,000-square-foot building.
“The purchase of our building is an essential step in the development of the school," SCI-Arc Director Eric Owen Moss said in a statement given to blogdowntown. "It also affirms SCI-Arc’s commitment to downtown Los Angeles."
The school expects to close escrow on the sale by May 1, 2011.
The lot next to SCI-Arc is the most prized of the properties included in the deal. The 7.9-acre site, which Meruelo Maddux called the "Sky-Arc" property, is entitled for 635 residential units and is valued between $28 and $29 million.
Also included are 0.5 acres at 3rd & Omar, 0.6 acres at 420 Boyd, two acres at Griffith and 16th, 1.3 acres at Hewitt and 4th and 125,000 square feet at 6th and Gladys.
In exchange, Legendary has agreed to release its liens on 425 W. 11th, the five-story Desmonds building at 11th and Hope; 336 W. 11th, a 0.7-acre parking lot at 11th and Olive; and property on both sides of Olive between 11th and 12th that contains J's Lounge and a parking lot.
Legendary had acquired the Meruelo Maddux loans from their original issuer, East West Bank.
A representative of Meruelo Maddux declined comment on today's settlement. On Thursday, the company will return to court to try and get approval for its Chapter 11 reorganization plan.
David McBane on January 24, 2011, at 05:46PM – #1
The less properties Meruelo Maddux controls, the better.
Raymond3000 on January 24, 2011, at 07:23PM – #2
I like what this says for South Park properties, esp the Desmond Bldg which I feel is loong overdue to be coverted to residential/work lofts. As well as the other lots ripe for development along 11th, 12th & Olive Streets, time will tell.
El Dabe Sherif on January 24, 2011, at 08:09PM – #3
Agree with Raymond3000...The Desmond building is ripe for something awesome. Does anyone know the status of the fenced-dirt lot on the corner of 11 and Grand, across from Starbucks? I think that is also a MM-owned lot. If that was for sale, I would get some people together and make an offer. El Dabe - Los Angeles Injury Attorney
Eric Richardson (@blogdowntown) on January 24, 2011, at 08:18PM – #4
That lot is part of the property with the Desmond building. The settlement clears the lien on it, allowing it to either be sold or developed.
El Dabe Sherif on January 25, 2011, at 09:10AM – #5
Interesting. Do you know how much MM bought the Desmond building for? How much is it worth today?
El Dabe Sherif on January 25, 2011, at 09:40AM – #6
I think you are correct that they are pat of each other somehow, but they have different lot numbers.
DESMONDS Assessor's ID No. 5139-008-010
Site Address 425 W 11TH ST
PARKING LOT Assessor's ID No. 5139-008-001
Site Address 1051 S GRAND AVE LOS ANGELES CA 90015
Both Recorded 10/28/2005
El Dabe - Los Angeles Injury Attorney
Thomas K Nagano on January 25, 2011, at 10:29AM – #7
Wrote in June 13, 2005
In a pure capitalistic society, developers like Richard Meruelo, can seek the highest price for their property, contribute large amounts to politicians, and abuse commercial tenants rights. The 35 or so tenants of Little Tokyo Square Mall have been suffering from serious deferred maintenance problems--broken lights, stolen fire hoses, etc. If the theory of broken windows represent criminal or gang activity. Do the four (4) broken entrance doors (one since he purchased the building years ago) at Little Tokyo Square Mall represent the moral equivalent?
Meruelo Maddux no longer owns Little Tokyo Square Mall - It wasn't "instant karma."
DawnC on January 25, 2011, at 09:31PM – #8
Glad to hear that SCI-Arc is finally buying it's property. The school was one of the pioneers of the Arts District, great to hear they'll be here for good.