In a recent turn of events, TPG has secured a valuable asset in the midst of a challenging financial situation. The firm has foreclosed on a multifamily development near Playa del Rey, which was previously owned by Sandstone Properties. Following Sandstone’s default on a loan associated with the property earlier this year, TPG acquired the property through foreclosure for $29.9 million, according to public records.
The property in question, located at 6733 South Sepulveda Blvd. in Westchester, encompasses a 2.3-acre site where Sandstone Properties had undertaken the construction of a 176-unit complex known as Silicon Beach Live.
The Registry reported earlier this year that Sandstone Properties had initially laid out plans for the apartment complex back in 2015. The 176-unit project secured funding over the years, with a $57.5 million construction loan from Pacific Western Bank in 2019 and a $24.3 million preferred equity investment from Harbor Group International. Finally in 2022, TPG Real Estate Finance Trust, a real estate finance platform of TPG, stepped in to refinance the property with a loan for $97 million.
Sandstone Properties failed to make debt payments in December, January and February. As a result, TPG initiated foreclosure proceedings, aiming to recover the outstanding loan amount, which at that time, was approximately $81 million.
Sandstone Properties is a Santa Monica-based firm founded in 1994. Since that time, the company has grown its portfolio to include $650 million worth of office, retail, industrial, multifamily and hospitality real estate.
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.
