Remember the early days of the real estate bust, when it was shocking to learn that a planned condo building was going rental? The Chapman is going rental--OMG! Today, news of another bank failure and another FDIC takeover doesn't even get a "Breaking" in the headline. Case in point: The Exposition, that 22-unit Kanner Architects-designed development at 11320 Exposition Boulevard in West Los Angeles is currently taking a break from sales following the FDIC takeover of its lender, Ventura-based Affinity Bank. The FDIC then sold the assets to San Diego-based Pacific Western Bank this fall, a move which ultimately complicated the process of completely finishing the building, according to Chris DeBolt, head of Hollywood-based development company Urban Environments, who tells us he expects sales to resume at the project early next year.
DeBolt believes an agreement with Affinity to finish the building (which is basically done at this point, and just needs final construction documents) and get the last of the subcontractors paid, is close.
It's a situation that sounds similar to that stalled Echo Park project, in which the developer basically has to wait on the new bank. "When a new bank comes in, they really control the loan, and it's a matter of waiting," says DeBolt. "Sometimes they want to sell the loan, and sometimes they want to work with the borrower."
And asked if any units sold before September, DeBolt says: "We received a few offers, but we didn’t accept any because we didn’t know what was going on with the bank." Meanwhile, this project was one of many new developments to open in West LA in the last year.
· The Exposition [Official Site]
· PriceChopper: Kanner Architects' Exposition Blvd Drops [Curbed LA]