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

2400 W. 7th Street
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.

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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.