Another apartment project in Los Angeles has been foreclosed on. Boston-based UC Funds has recently taken action to foreclose on a 126-unit luxury apartment development that appears to still be under construction. The property, which is located at 2870 West Olympic Blvd. in Los Angeles’ Koreatown, was acquired by UC Funds in a foreclosure auction for $33 million, according to a report from The Real Deal. This move comes after UC Funds reported a default on the planned development just one month prior to the auction.
UC Funds had initially provided a $30 million construction loan for the property in March 2020, according to industry reports from that time. The property was previously under the ownership of developer LiveWorkCreate, which planned to develop the site with a seven-story apartment complex. City records show that the project was initially approved in 2020 and would have included 5,998 square feet of ground floor commercial space as well as 130 vehicle parking spaces. The project also would have set aside about 10 percent, or 13 units, for affordable housing.
As of June last year, the development had reached a significant milestone, with the completion of the wood framing. The project was on track for a projected completion date later that year.
However, UC Funds filed a default notice on Sept.12. Per the deed filing, The Real Deal reported that the lender estimated the amount of unpaid debt on the property to be approximately $41 million. UC Funds’ foreclosure is not an isolated incident. Several other creditors and contractors have also taken legal action against LiveWorkCreate between June and October, highlighting the financial difficulties that have plagued the project.
The project joins several other Los Angeles properties that have been foreclosed on in recent months.
TPG also foreclosed on Sandstone’s 176-unit Silicon Beach Live development, which is located at 6733 South Sepulveda Blvd. Following Sandstone’s default on a loan associated with the property earlier this year, TPG acquired the property through foreclosure for $29.9 million.
