TPG RE Finance Trust has moved to foreclose on Sandstone Properties’ planned apartment development in Westchester near Playa del Rey, after Sandstone defaulted on a $97 million loan tied to the project in February.
Sandstone currently owes an estimated $81 million on the loan, according to a notice of trustee sale filed with L.A. County last month. The foreclosure auction is scheduled for Aug. 17.
Eri Kroh’s Sandstone has planned to build a 176-unit complex at 6733 South Sepulveda Boulevard, dubbed Silicon Beach Live, since 2015, according to documents from the Neighborhood Council of Westchester and Playa Del Rey.
In 2019, the firm scored a $57.5 million construction loan for the project from Pacific Western Bank, records show. Harbor Group International also had funded a $24.3 million preferred equity investment in the development, funding that was fully paid off in 2022, according to a Harbor Group spokesperson.
TPG RE Finance Trust, a publicly traded firm backed by private equity giant TPG, then refinanced the property with a $97 million loan in 2022.
The apartment complex was finished in April, reports said, but apartments are not yet available to rent, according to online listings for the property.
Sandstone failed to make monthly debt payments in December, January and February, according to a notice of default filed with L.A. County.
The developer also failed to meet certain completion deadlines for the project, which counted as an event of default.
Nearby, in Culver City, the firm plans to build a 175-key hotel at 11469 Jefferson Boulevard.
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Los Angeles
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