Bloomberg covers the ongoing legal fight between former development partners Lehman and SunCal, reporting that SunCal believes that Lehman should have no claim to 18 bankrupt projects because Lehman sold its stake in those loans, while Lehman argues that the loan transfers weren’t sales, and Lehman was still acting as the authorized agent for the new owners. Warning: Reading this story may make you want to stab yourself in the eye. In any case, a US Bankruptcy judge will rule by Oct. 15th in the case, although in a tentative ruling this week, she sided with SunCal. And mentioned in the story, although what looks to be part of a different settlement between the two companies: The 10000 Santa Monica Boulevard, the site of that now-canceled Jean Nouvel-designed leafy green tower. You'll recall the site was put into Chapter 11 back in November 2008.
According to Bloomberg, the site is now owned by Copenhagen-based Danske Bank. And while SunCal paid outbid Donald Trump for the property, paying $110.2 million in 2006, the price has dropped a tad since:
"Three years later, the lot sits fenced and vacant, valued at $39 million by SunCal and $51 million by Lehman. Lehman had transferred the underlying loan to Danske Bank, the trustee said. Whoever buys the properties may get a bargain, with land in parts of California 60 percent to 80 percent below the peak of three years ago, said Tim McSunas, chief investment officer of Shopoff Group, an Irvine, California-based land developer."
· Lehman, SunCal Battle in Court for California Luxury Home Sites [WSJ]