Shekhter vs. AEW drama continues with appellate court ruling

Los Angeles /
Dec.December 22, 2016 03:30 PM

The future of nine Westside rental properties which recently sold for $430.5 million is now uncertain, thanks to an appellate court ruling Tuesday that suspends AEW Capital Management’s sole control of the portfolio.

The latest decision halts a court order that stripped Santa Monica developer Neil Shekhter of control over the buildings, for which he was a joint venture partner with AEW.

Barely a month after the court order was issued in November, AEW sold the disputed properties to Verbena Road Holdings, a subsidiary of San Francisco firm SPI Holdings.

AEW’s attorney, James Fogelman of Gibson Dunn & Crutcher, said in a statement that the appellate court order would have “no impact…on the sale of the properties last month,” the Los Angeles Business Journal reported. He expects the original court order to be upheld.

A third lawsuit could also impact the fate of the portfolio. Shekhter, under his company NMS Properties, filed a lawsuit earlier this month alleging that AEW was illegally selling the properties to SPI. Both AEW and SPI are named in the suit.

The saga began in 2014, when Shekhter alleged that AEW violated terms of their joint venture agreement. AEW counter-sued, alleging that Shekhter had forensically altered legal documents to match his claims.

Last month, a judge threw out Shekhter’s claims. In addition to ordering him cede control of the nine properties, the court ruled that he had forged documents, destroyed evidence and committed perjury. [LABJ]Cathaleen Chen


Related Articles

arrow_forward_ios
Neil Shekhter with NMS 1548 Sixth and NMS Northridge

NMS Properties’ multifamily portfolio goes to special servicing, but why?

NMS Properties’ multifamily portfolio goes to special servicing, but why?
From left: Alan, Adam, and Alex Shekhter, with renderings of 501 Broadway and 601 Colorado (Credit: WS Communities and LinkedIn)

Shekhters’ WS Communities lands $157M loan to build 850 rental units in Santa Monica

Shekhters’ WS Communities lands $157M loan to build 850 rental units in Santa Monica
NMS Properties expands in Santa Monica with 100-unit resi complex proposal

NMS Properties expands in Santa Monica with 100-unit resi complex proposal

NMS Properties expands in Santa Monica with 100-unit resi complex proposal
Whole Foods-anchored retail plaza in Upland sells for submarket record high

Whole Foods-anchored retail plaza in Upland sells for submarket record high

Whole Foods-anchored retail plaza in Upland sells for submarket record high
Santa Monica files criminal charges against Neil Shekhter’s son for tenant harassment

Santa Monica files criminal charges against Neil Shekhter’s son for tenant harassment

Santa Monica files criminal charges against Neil Shekhter’s son for tenant harassment
In long-running legal battle, Neil Shekhter is dealt another blow

In long-running legal battle, Neil Shekhter is dealt another blow

In long-running legal battle, Neil Shekhter is dealt another blow
Neil Shekhter handed another defeat in court battle with AEW

Neil Shekhter handed another defeat in court battle with AEW

Neil Shekhter handed another defeat in court battle with AEW
Embattled developer plans 89-unit resi complex in Westside

Embattled developer plans 89-unit resi complex in Westside

Embattled developer plans 89-unit resi complex in Westside
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...