The site of the planned Silicon Beach Live apartment project has recently fallen under new ownership. TPG Real Estate Capital recently offloaded the 2.3-acre multifamily development site in Playa del Rey. The property was acquired by Kajima USA for $56 million, following TPG’s foreclosing on the property several months ago, The Real Deal reported.
The site of the 176-unit development would be located at 6733 South Sepulveda Blvd. The project was initially planned by Sandstone Properties, and while the project’s shell was completed in April, the developer faced setbacks, failing to meet certain completion deadlines.
TPG Real Estate Capital had initially provided a $97 million loan to Sandstone Properties in 2022 for the development project. However, Sandstone defaulted on the loan, accumulating nearly $80 million in debt and failing to make crucial debt payments in December 2021 and January and February of 2022. As a result, TPG seized the property through a $29.9 million partial credit bid in October.
It remains uncertain whether Kajima USA will take on the responsibility of finishing the project.
Kajima U.S.A. Inc. is a wholly-owned U.S. subsidiary of Kajima Corporation based in Tokyo, Japan. The subsidiary is based in Atlanta and operates engineering, design, construction and development businesses in North America through its operating companies, the firm’s website states.
Founded in 1992, TPG, formally Texas Pacific Group, is a private equity firm based in Fort Worth. The firm maintains approximately $139 billion worth of assets under management and has more than 300 portfolio companies, according to its website.
