The Real Deal Los Angeles

Owner of Westlake property says seller failed to deliver shovel-ready site

A lawsuit says seller needed to clear tenants and deliver the property entitled
By Dennis Lynch |
Research by Haru Coryne
November 08, 2018 02:15PM

2400 W. 7th Street

The owner of a Westlake strip mall is suing the group that sold it the property, claiming they agreed to deliver it vacant to make way for a 106-unit multifamily development.

Park View Apt LLC purchased 2400 W. 7th Street earlier this year for $13.1 million via another entity from the seller group — Seven Ark LLC, Creative Properties LLC, and Bob Halavi. Seven Ark included a written agreement stating it would deliver the property vacant of tenants, entitled, and “ready to issue permits” for the mixed-use development.

Park View Apt LLC says that hasn’t happened, according to a suit filed in Los Angeles County Superior Court last week. The firm wants monetary compensation for damages. The plaintiffs and defendants did not return requests for comment.

The property is roughly 30,200 square feet, with a 12,000-square-foot retail strip mall built in 1993, according to Los Angeles Property Advisors, the listing agent on the property. It is a corner property directly across W. 7th Street from MacArthur Park.

The entitlement in question is for a six-story project with 4,900 square feet of ground floor retail space, for a total square footage of 102,300. The purchase agreement also stipulated that the demolition permits for the strip mall be applied for and approved.