Unfortunately, this one is in Malibu, so it can't be claimed as Los Angeles' biggest real estate disaster. An unfinished 8-unit townhome development at 22065 Pacific Coast Highway, near tony Carbon Beach, the units were originally priced at $3.2 million, "which is comparatively cheap for the neighborhood," according to a May 2008 Los Angeles Times article. Not cheap enough. Last fall, Chicago-based Builders Bank filed for judicial foreclosure and receivership on the Pacific Coast Highway project. First eight pages of the complaint are here. In January*, the Malibu Times reported that the project had been foreclosed upon and was headed to auction. It's not clear if an auction took place, or if the units sold, but filings this month in the Builders Bank case mention talk of hiring a new contractor. Neither the bank nor any of the defendants listed in the complaint returned calls. Ah, Carbon Beach, if only you'd gone the way of Villas Malibu and used sexy girls in bathing suits as bait. Meanwhile, here's how the project was supposed to turn out.
· ConstructionWatch: Carbon Beach's $3.2 Million Villas [Curbed LA]