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Roosevelt Lofts to Sell? Court Set to Rule on Settlement

By Eric Richardson
Published: Thursday, June 09, 2011, at 02:17PM
Roosevelt Sales Center Eric Richardson [Flickr]

The 220-unit Roosevelt Lofts entered bankruptcy in April of 2009.

The Roosevelt Lofts' two-year-long stint in Chapter 11 bankruptcy proceedings could be coming to an end.

Lawyers for developer Milbank Real Estate and lender Bank of America will take an all-too-familiar trip to Judge Geraldine Mund's Sherman Oaks courtroom on Friday in hopes of securing approval for a $95 million sale of the 222-unit residential project at 7th and Flower.

Hoping to buy the property is Greystar, a national multifamily real estate company that already picked up the Title Guarantee Lofts at 5th and Hill and the Great Republic Lofts at 8th and Spring.

At least $68 million of that purchase price will go to Bank of America, which has fought vigorously to take control of the building since it entered bankruptcy. Approximately $16 million would go to other firms owed money by the project.

The Roosevelt was designed as a condo project, but is currently leasing units on the 3rd through 8th floors. Some construction still remains on the building's upper floors.

6:30pm — Let's dig a little deeper here...

The sale agreement gives Greystar two options: buy the 222 residential units for $89 million, or the whole building (including retail) for $95 million. The company chose the latter. Still, using that $89 million number gives a valuation of $400 per unit for the residential. That's a pricey purchase.

What evidence suggests the building is worth it? A rental roll attached to the court documents shows 80 units currently occupied, at an average of $2.32 per square foot. Leases signed in 2011 are slightly north of that, at $2.36 per foot. The 25 leases signed since April 1 range from $2.16 to $2.83 per foot, with an average of $2.44.

All told, the residential units are currently bringing in $189,000 each month, with retail income adding in another $37,000.


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