TA Partners’ big Irvine plans face foreclosure after $200M default

Mack Real Estate schedules auction for mid-February on two multifamily projects

Mack Schedules Foreclosure Auction on TA Partners Irvine Projects
TA Partners’ Johnny Lu and Mack Real Estate Group's Richard Mack and 18831 Von Karman Avenue and 17422 Derian Avenue (TA Partners, Getty)

TA Partners hovers on the brink of losing two large multifamily projects in Irvine, after defaulting on $200 million in loans from Mack Real Estate.

Mack has scheduled a foreclosure auction for 18831 Von Karman Avenue and 17422 Derian Avenue on Feb. 15, according to trustee sale notices filed with Orange County. 

Mack declined to comment on the pending auction.

TA Partners had planned to build 658 units across the two sites and scored two loans totaling $262.5 million from Mack to help push construction along. 

While it’s unclear whether the loans were floating-rate, the debt was given out in February last year, before the Federal Reserve hiked rates seven times over the course of 2022. The loans were set to mature in 2027, according to property records. 

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TA, founded by Johnny Lu, boasts a portfolio valued at nearly $2 billion — it has more than 2,700 units under development across Los Angeles and Orange counties, according to its website. Lu also raised capital for projects from Asia. 

However, few units have come to fruition. 

In Irvine, TA owed $11 million as of Oct. 1 for the two loans, prompting Mack to file notices of default on both projects. 

TA is not the only multifamily developer that has defaulted on loans tied to construction projects in recent months. 

Orange County-based firms Realm Group and Bascom Group defaulted on a $33 million loan tied to 675 South Bixel Street in Downtown Los Angeles, where the companies had planned to build a 422-unit tower.