Billionaire developer Alan Casden has acquired 100 percent of the Westwood Palazzo from his partners and is caught up on payments on the marquee apartment complex, according to a spokeswoman.
Financial terms of the deal were not released, but it was disclosed that Casden established a new company called Casden Property Co. LP to acquire all interests in the Palazzo, which features 350 apartments and 50,000 square feet of retail.
The Business Journal reported last week that the complex, along with five undeveloped properties in Los Angeles and Ventura counties, was mired in a partnership dispute that led to missed loan payments and foreclosure actions from lenders led by Comerica Bank.
Casden’s representatives have said that the properties would be brought out of any default once the dispute with partner Cerberus Partners LP, a New York private-equity firm, was resolved. They have not released details of the dispute.
By far the most valuable property of the half-dozen, the Palazzo was the first to be acquired 100 percent by Casden and brought out of default, said Barbara Casey, an outside spokeswoman for Casden Property.
She added that discussions are under way for similar deals on the other five properties, which are in West Hollywood, Santa Clarita, Oxnard, Ventura and Simi Valley. Each property will have its partnership dissolved separately.
Casey would not say whether Casden will retain possession of all of them.
The foreclosure lawsuits allege Casden Properties LLC, a company formed by Casden, Cerberus and apartment operator Aimco, has missed payments since November. Six banks claim that Casden Properties owes a total of $199 million, including $4.6 million in unpaid interest and more than $700,000 in late fees.
Most of the loans taken out were for the Palazzo: Casden Properties borrowed $173 million of its $206 million development cost, and still owes $166 million, according to the lawsuits, which don’t reflect any payments Casden may have made this month.
The foreclosure lawsuits were still pending in Los Angeles Superior Court at press time, and Comerica’s attorneys could not be reached for comment.
Casden, whom the Business Journal estimated in May had a net worth of $2.63 billion, succeeded in opening the Palazzo property in 2008 despite community opposition. His company has said that it is now fully leased.
Of the remaining projects, only Movietown Plaza in West Hollywood, featuring 370 condos and apartments, and 32,000 square feet of retail, is ready to break ground.
