Lender Forecloses on 9900 Wilshire Blvd.
The 9900 Wilshire Blvd. property controlled by Project Lotus LLC, a joint venture with Kaupthing Bank and Guernsey based development company, CPC Group, was foreclosed on Thursday morning in Norwalk, Calif. by means of a public auction conducted at 10: 30 am.
There were no bidders other than the lender, Banco Inbursa, which now owns the property.
Spokeswoman from CPC Group, Nina Sanders, said early Thursday morning that CPC and the lender had reached a final agreement.
When asked whether the agreement called for the public sale to proceed today, she declined to comment.
“We are disappointed not to be involved in Beverly Hills, however this was a direct impact of Kaupthing going into administration in October 2008,” said the spokeswoman.
The sale follows CPC defaulting on the $365.5 million loan it borrowed to buy the site, along with Kaupthing HF Bank of Iceland, in April 2007 for $500 million from New Pacific Realty.
Their original plans called for the demolition of the existing 228,000 square-foot Robinson-May department store building and parking structure. It was to be replaced by 235 condominiums in two buildings, along with 16,441 square-feet of retail and restaurant space.
The project was supposed to break ground last summer and take 30 months to build, but it was put on hold after Kaupthing declared bankruptcy in the fall of 2008.