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Tag: Foreclosure Sale

  • Kanye West sues ex-employee over Malibu mansion lien

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    Kanye West, the rapper now known as Ye, is suing his former project manager and his lawyers, alleging they wrongfully put a $1.8-million lien on his former Malibu mansion.

    The suit, filed in Los Angeles Superior Court on Thursday, alleges that Tony Saxon, Ye’s former project manager on the property, and the law firm West Coast Trial Lawyers, “wrongfully” placed an “invalid” lien on the property “while simultaneously launching an aggressive publicity campaign designed to pressure Ye, chill prospective transactions, and extract payment on disputed claims already being litigated in court.”

    Saxon’s lawyers were not immediately available for comment.

    Saxon, who was also employed as West’s security guard and caretaker at the Malibu property, sued the controversial rapper in Los Angeles Superior Court in September 2023, claiming a slate of labor violations, nonpayment of services and disability discrimination.

    In January 2024, Saxon placed the $1.8-million “mechanics” lien on the property in order to secure compensation for his work as project manager and construction-related services, according to court filings.

    A mechanics lien, also referred to as a contractor’s lien, is usually filed by an unpaid contractor, laborer or supplier, as a hold against the property. If the party remains unpaid, it can prompt a foreclosure sale of the property to secure compensation.

    Ye has denied Saxon’s allegations. In a November 2023 response to the complaint, Ye disputed that Saxon “has sustained any injury, damage, or loss by reason of any act, omission or breach by Defendant.”

    According to Ye’s recent complaint, he listed the property for sale in December 2023. A month later, he alleged, Saxon and his attorneys recorded the lien and “immediately” issued statements to the media.

    The suit cites a statement Saxon’s attorney, Ronald Zambrano, made to Business Insider: “If someone wants to buy Kanye’s Malibu home, they will have to deal with us first. That sale cannot happen without Tony getting paid first.”

    “These statements were designed to create public pressure and to interfere with the Plaintiffs’ ability to sell and finance the Property by falsely conveying that Defendants held an adjudicated, enforceable right to block a transaction and divert sale proceeds,” the complaint states.

    The filing contends that last year the Los Angeles Superior Court granted Ye’s motion to release the lien from the bond and awarded him attorneys fees.

    The Malibu property’s short existence has a long history of legal and financial drama.

    In 2021, West purchased the beachfront concrete mansion — designed by Pritzker Prize-winning Japanese architect Tadao Ando — for $57.3 million. He then gutted the property on Malibu Road, reportedly saying “This is going to be my bomb shelter. This is going to be my Batcave.”

    Three years later, the hip-hop star sold the unfinished mansion (he had removed the windows, doors, electricity and plumbing and broke down walls), at a significant loss to developer Steven Belmont’s Belwood Investments for $21 million.

    Belmont, who spent more money to renovate the home, had spent three years in prison after being charged with attempted murder for a pitchfork attack in Napa County. He promised to restore the architectural jewel to its former glory.

    However, the property has been mired in various legal and financial entanglements including foreclosure threats.

    Last August, the notorious mansion was once again put on the market with a $4.1 million price cut after a previous offer reportedly fell through, according to Realtor.com.

    The legal battle surrounding Ye’s former Malibu pad is the latest in a series of public and legal dramas that the music impresario has been involved in recent years.

    In 2022, the mercurial superstar lost numerous lucrative partnerships with companies like Adidas and the Gap, following a raft of antisemitic statements, including declaring himself a Nazi on X (which he later recanted).

    Two years later, Ye abruptly shut down Donda Academy, the troubled private school he founded in 2020.

    Ye, the school and some of his affiliated businesses faced faced multiple lawsuits from former employees and educators, alleging they were victims of wrongful termination, a hostile work environment and other claims.

    In court filings, Ye has denied each of the claims made against him by former employees and educators at Donda.

    Several of those suits have been settled.

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    Stacy Perman

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  • Value of Gas Company Tower in DTLA Drops Another 21%

    Value of Gas Company Tower in DTLA Drops Another 21%

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    The Gas Company Tower, L.A.’s fifth tallest building, is worth one-fifth less than a year ago and two-thirds less than its value in 2021.

    The value of the 52-story tower, now on the market by a receiver after Toronto-based Brookfield walked away from its debt obligations, is $214.5 million — 21 percent less than its appraisal last summer, the Commercial Observer reported, citing figures from Trepp.

    The spire at 555 West 5th Street in Downtown is backed by a $350 million commercial-mortgage backed securities loan and more than $100 million in mezzanine financing.

    Three years ago, the 1.4 million-square-foot building was valued at $632 million, or $451 per square foot. That means its latest value amounts to 34 percent of its worth in 2021.

    The new valuation for the property works out to $153 per square foot — a potent indicator of the decline in the Downtown office market since the pandemic shift to remote work.

    The Gas Company Tower, set for a foreclosure sale, is 57 percent leased, according to JLL, down from 73 percent in September 2022.

    In February of last year, Brookfield defaulted on two senior loans attached to the property — one for $210 million and another for $140 million. The combined debt is now $465 million.

    The alternative investment firm, ranked by Zippia as the world’s second-largest real estate company behind Austin-based Keller Williams Realty, last spring handed over its keys to the receiver, Gregg Williams of Trident Real Estate Group.

    This month, Trident hired JLL to market the 33-year-old tower, revamped in 2017, for an undisclosed price.

    CoStar also reported the city could be a potential buyer, according to foreclosure filings

    The City of Los Angeles is set to move more than 1,200 employees from five municipal departments into the Gas Company Tower after signing a 15-year lease for 308,000 square feet.

    The deal came after WeWork announced in February it would vacate 92,000 square feet at the tower, and law firm Sidley Austin is set to exit 137,000 square feet in October 2026.

    — Dana Bartholomew

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    TRD Staff

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  • Adams County Sheriff Sells Over $1.1 Million in First-Ever Online Sale

    Adams County Sheriff Sells Over $1.1 Million in First-Ever Online Sale

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    Press Release



    updated: Jun 3, 2021

     Adams County, Pennsylvania, hosted its first-ever online sheriff sale on May 21 with online auction site Bid4Assets.com. By moving the sale online, the sheriff’s office increased participation by about 50% when compared to previous live auctions. More importantly, Adams County’s sheriff’s sales have traditionally sold about 30% of its property to third-party bidders, but sold 70% in their first online sale. In total, the online sale generated over $1.1 million in third-party sales while streamlining the process for bidders and county staff and eliminating COVID-19 concerns that arise from live auctions.

    “The increased audience and competitive bidding in our sheriff’s sale contributed to higher excess proceeds for the defendants and fewer bank-owned properties, which was a wonderful benefit to see as part of this transition,” said James W. Muller, Adams County Sheriff.

    Sheriff’s sales are public auctions resulting from a lender filing a foreclosure action, often as a result of a default on a mortgage from a bank. If the property sells to a third-party buyer for over the debt amount, the former owner will see their debt eliminated and can even claim excess proceeds. If the bidding does not go high enough, the lender will typically take the property and it becomes REO, or bank-owned property. Six counties in the commonwealth have taken their sheriff’s sales online since COVID-19 hit, and all have reported increased sales.

    Winning bids in this sale ranged for $31,200 for a single-family residence in East Berlin to $277,834 for a Gettysburg townhome on Baltimore Street. The Baltimore Street property sold for over $96,000 more than the debt balance, so the previous owner may claim those funds. Over 40% of the properties that sold third-party had a surplus that the prior owners can claim.

    “We’re very pleased to see that Adams County’s first online sheriff’s sale was such a success,” said Bid4Assets CEO Jesse Loomis. “Other sheriffs in the commonwealth and throughout the U.S. are following Adams County’s example and are in the process of transitioning online. With the numerous benefits and the fact our services come at no cost to counties, we are confident this format will become the new normal well beyond COVID-19.”

    Adams County’s next sheriff’s sale is scheduled for Wednesday, July 16 on Bid4Assets. A free Bid4Assets account is required to participate in all auctions hosted on the website. Users can visit the Bid4Assets website and register an account by going to www.bid4assets.com/registration.  

    About Bid4Assets

    Bid4Assets (http://www.bid4assets.com) is an online auction site based in Silver Spring, Maryland. The privately held company auctions distressed real estate for the federal government, sheriff’s offices, county tax collectors, financial institutions and real estate funds. Since its inception in 1999, the company has sold more than 125,000 properties nationwide and grossed over a billion dollars in auction sales.

    Media Contact:

    Sean McLaughlin

    sean@bid4assets.com

    301-562-3427

    Source: Bid4Assets Inc.

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