SB Properties-Affiliated Companies Dispute Suit Over $402M Portfolio

Downtown Los Angeles.

A group of LLCs controlled by Barry Shy's SB Properties disputed a complaint brought by Laguna Point Properties in August over a $402M Downtown LA apartment portfolio.

Laguna Point bought the properties in April, but a few months later sued its predecessor, alleging breach of contract for not making the disclosures around tenant litigation, unpaid bills and defects at the properties.

The suit did not name Shy, a prominent developer in Los Angeles.

The LLCs responded last week, filing a demurrer arguing that Laguna Point's case doesn't have legal standing, The Real Deal reported, but did not dispute the facts of the case.

Laguna Point said in its complaint, filed in August, that issues included an undisclosed threat of litigation being brought by tenants who say that the then-owners made the buildings uninhabitable and allegations that SB Properties collected rent for two months after the sale went through, TRD previously reported.

Laguna Point's $402M purchase of five adaptive-reuse properties in Downtown LA worked out to a per-unit price of approximately $387,600, above the roughly $375K per unit average for the area at the time.

Continue reading this story with a free account

Log in or register
Sign up for more articles like this
Subscribe to Bisnow's Los Angeles Newsletters
Related Stories

Housing Completions Close To 40,000 As LDA Adds Major Site And CEO Departs

Voorhees Greenlights 178-Unit Office-To-Resi Conversion Amid Multifamily Boom

Battered Mortgage REIT Suspends Dividend To Preserve Cash

Tyko Capital Sets New Record For Florida's Largest Construction Loan

Hof Wonen Acquires 251 Social Rental Houses In New Mixed-Use Project In The Hague

Capital Flooded Into Bay Area Apartments. Then Treasury Yields Spiked

The New Challenge For Apartment Managers: Proving Listing Photos Are Real

Epicenter Landcorp Buys Culver City Flex Industrial Building For $11M

How Pacific Northwest Multifamily Owners Are Using Sustainability To Strengthen Asset Performance

Hudson Pacific's Historic San Francisco Conversion Project Gets Approval

Hollywood's Yamashiro Complex Gets $25M Refinance: The Los Angeles Deal Sheet

FIRST DRAFT LIVE: Why Sun Belt Multifamily Giant Cortland Is Moving Its Money North