Mohamed Hadid's 65+ Acres in Beverly Hills set for Bankruptcy Auction

BEVERLY HILLS, Calif., Feb. 24, 2022 /PRNewswire/ -- After years of controversy, 65 acres of undeveloped residential land near the Franklin Reservoir in Beverly Hills, also known as the Coldwater Development, is being sold under authority of the United States Bankruptcy court, and as directed by court appointed Trustee, Sam Leslie.

The 6 parcels, which sit just west of Coldwater Canyon and Royalton Drive, north of Sunset Boulevard, range in size from 4.92 to 21.29 acres, and have some of the most spectacular views in the city. They are owned by two holding companies, which filed for Chapter 11 bankruptcy protection in January of 2021. After almost one year of contemplated sales, in December of 2021 the Bankruptcy Court assigned an independent trustee to take over the liquidation process to ensure a fair, transparent and final disposition of the land.

Mohammad Hadid, owner/member of both Coldwater Development LLC and Lydda Lud LLC, purchased two of the parcels in 2006 and the remaining four in 2011 when he began grading for his planned development. Since then, however, the project has been plagued with a number of development delays. According to one source, the delays were largely attributable to Hadid's grandiose vision, which contemplated a large compound with eleven homes, at least one mega mansion of 100,000 square feet, three guard towers and a helipad. This development plan both conflicted with local zoning ordinances, and enraged locals who feared their treasured hiking spot along the Hastain trail would become an over-developed eyesore. In September of 2011, a local, Ellen Scott, organized "Friends of the Hastain Trail" with six or seven likeminded Hastain Trail hikers, and filed a lawsuit to stop development and secure a prescriptive easement to the trail. While Hadid offered to relocate and enhance the trail for the benefit of the hikers, the legal process persisted, causing a five- year development delay.

In 2016, Hadid won an appellate court decision that resolved doubt about his, or a future owner's rights to develop the land, subject to adherence to local zoning and permitting requirements; however, his ability to service his debt on the property while funding the development ultimately resulted in the bankruptcy filings and now the forced sale of the land by the Trustee.

The properties are being offered through a live and webcast auction conducted by ThreeSixty Asset Advisors and Tranzon Asset Strategies, who have been retained by the court appointed Trustee and employed by Bankruptcy Court Order. The auction, being billed as the Royalton Auction, will take place on March 24, with each parcel offered both individually and then grouped in combinations as bidders may desire. The final bids will be awarded based on the highest and best prices achieved.

"Ours is not to decide what will be done with the property. We know many would like it to remain for the exclusive use of hikers, but it is privately owned property" said Jeff Tanenbaum, President of ThreeSixty Asset Advisors one of the firms running sale process. "Our mandate is to identify interested parties and sell the properties to the highest and best bidders, whether that's one entirety buyer or six individual purchasers." Mr. Leslie echoes this view, adding that "the auction provides an equal opportunity for one or more buyers to purchase parcels to develop their dream home, or for a philanthropist to purchase the land for conservation. Plus, with over 65 acres available, there's plenty of space for tasteful development and hiking trails to co-exist."

Undeveloped parcels of this size in the prestigious 90210 Beverly Hills zip code are a rarity, especially with three-hundred-sixty-degree views. However, a recent sale of Enchanted Hill – a comparable 120- acre property – sold for a reported $65 million dollars to former Google CEO Eric Schmidt – a price many consider a bargain. At one point, Jeff Bezos had reportedly offered $90 Million for the property. Meanwhile, buyers of the Coldwater Development land would find good company nearby. In addition to the many celebrity residents of the area, producer, director, and actor Tyler Perry's property - where Prince Harry and Meghan Markle recently enjoyed an extended stay - abuts the north end of the Coldwater lots.

"These are spectacular parcels, and some of the last of their kind given their size, location and amazing views," points out Mike Walters, President of Tranzon Asset Strategies, the real estate auction firm selling the property. "A recent appraisal, which considered only three homesites on the six parcels, estimated the land value after site development at $150 million and 'as-is' at $131 million. Of course, being sold at auction, the value will ultimately be determined by the buyers."

Interested parties can obtain more information about the properties and auction at www.tranzon360.com.

Media Contact:
Tiffeny Cook
(888) 314.1314
[email protected] 

SOURCE Tranzon 360

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