New Owners of 9900 Wilshire Blvd May Be Ready To Develop…
October 3, 2011 by Jed Tarr
9900 Wilshire Blvd has made fortunes for its owners, and lost fortunes for its owners… and we mean fortunes! In 2004, Federated Department Stores sold the 8-acre Beverly Hills site to New Pacific Realty for $23.5 million. Two years later, New Pacific Realty halted plans of developing condominiums, when they were presented with an offer of $500 million from billionaire brothers Christian and Nicolas Candy, of London-based real estate company, Candy & Candy. The brothers had plans for an ultra-luxury condominium development, targeting wealthy Europeans and other foreigners looking for second homes in Beverly Hills, but as the markets collapsed and their partner; Kaupthing Bank, bailed on the project – the $365 million acquisition loan went into default. The property was taken back via foreclosure by the primary lending institution, Banco Inbursa, which was run by Mexican billionaire Carlos Slim, and in 2010 the property was acquired from the bank for $148 million.
The new owners, Joint Treasure International; a group of three wealthy investors from Hong Kong & Singapore, are now talking with Beverly Hills City Officials about restarting the project. Joint Treasure owns the now entitled site, for nearly $350 million less than what Candy & Candy paid for the land alone; equating to a significantly lower basis to make the project work by. According to the LA Business Journal, real estate professionals believe that with the lower basis and the now lower construction costs, the new developers will be able to offer some of the condos for under $2 million; far below what Candy & Candy would have needed to get for their cheapest units.
The new development will target Korean-Americans and Korean nationals, who in 2006 were granted permission by the South Korean government to spend up to $1 million on foreign real estate.