The house doesn't always win. Sometimes a hedge fund wins the house. KROQ founder Ken Roberts tells Forbes blogger Teri Buhl that he'll be handing over the Robert Taylor Ranch in Brentwood to hedge fund New Stream Capital to settle a court-ordered debt of $27.5 million. The 112 acre estate has seven bedrooms, 17.5 bathrooms, a 10 car garage, stables, a tennis court, and a casino. Roberts bought the property in 1975 for $900,000 and listed it for sale in 2002, asking $35 million. He took it on and off the market, raising the price as time went on, and in 2008 listed it for $65 million. The ever-increasing price might have had something to do with the $28 million loan Roberts took out with New Stream, for which interest at times shot as high as 31%. Buhl says "The hedge fund wouldn’t comment on how soon they plan to put the property out for auction or if they already have a lustful buyer ready to pay when they take ownership next week." The ranch was listed again in June asking $56 million.
· Hedge Fund Seizing L.A. Radio Mogul’s Huge Estate [Teri Buhl]
· Does $65 Million Brentwood Casino Come With Free Drinks? [Curbed LA]