The apartment building featured on the Eagles’ Hotel California album back cover is headed to a foreclosure auction later this month.
The Lido, a mid-rise Hollywood building with 100 apartments, has a $29.4 million unpaid debt balance tied to it, according to a legal notice published in the Daily Commerce.
A company connected to Neveo Mosser’s Mosser Capital owns the building, at 6500 Yucca Street. Mosser earlier received a notice of default from lender Ready Capital before the foreclosure auction was scheduled for October 28.
Mosser Capital, a real estate syndicator and private equity firm, purchased the apartments for $32 million, or $320,000 per unit, about seven years ago. The Real Deal reported it was the San Francisco company’s first buy in Southern California at the time. The distressed loan originated in 2021.
Mosser and Ready Capital did not immediately respond to requests for comment.
This is at least the fourth time in two years the landlord has faced default, but the others were tied to apartments in San Francisco.
Entities connected to Mosser recently received notices of default on an $11.8 million loan backed by the Hotel North Beach and a $14.8 million debt tied to an apartment building at California Street.
Early last year, Mosser Companies defaulted on a 2018 loan for $88 million tied to 12 buildings and 459 apartments across San Francisco.
And in July, Mosser sold a Nob Hill apartment building for $16.5 million after defaulting on a multimillion-dollar loan backed by JPMorgan that was tied to the property.
A “huge distress cycle” for multifamily borrowers has been predicted across the Sun Belt by people like Barry Sternlicht of Starwood Capital Group.Many multifamily players were squeezed by floating-rate debt, which had value-add syndicators riding a sinking ship a couple of years ago. Los Angeles-based Tides Equities was among the players who have struggled to keep foreclosures at bay.
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