Battle brewing over six surface parking lots downtown near LA Live

"Criscione Meyer Entitlement (CME) purchased the six parcels from defendant 110 West Properties out of bankruptcy for $22 million five years ago. The purchase price was paid via a loan obtained by CME in the amount of $10 million and secured by a deed of trust. The remaining $12 million was paid via a promissory note payable to the seller, 110 West, and secured by a second deed of trust."

"Then, CME became a landlord to 110 West, and later to defendants Shamrock Parking and Classic Parking, which the complaint calls co-conspirators and alter egos of Ulemann. Some time passed, some extensions on the debt was granted, and CME eventually negotiated a deal to pay off that $12 million loan for just $500,000, per the complaint. CME claims 110 West accepted the $500,000 payoff in writing but then sold its $12 million note on the property to Classic Parking."

"Classic Parking then refused to honor the $500,000 payoff agreement. CME alleges this was a breach of contract and part of a coordinated effort to block the refinancing of five parcels and a sale of one to an electric vehicle fast charging company for about $11 million. (CME accused the lessees and defendants of illegally occupying the space because their lease is up and they owe rent, too)."

Criscione Meyer Entitlement owns six downtown Los Angeles surface parking lots totaling about 69,000 square feet and holds entitlements for affordable residential redevelopment. CME purchased the parcels from 110 West Properties for $22 million, financed by a $10 million loan and a $12 million promissory note secured by a second deed of trust. CME later leased the lots to 110 West, Shamrock Parking, and Classic Parking. CME negotiated a payoff of the $12 million note for $500,000 and alleges 110 West accepted in writing but sold the note to Classic Parking, which refused to honor the payoff. CME alleges breach of contract and a coordinated conspiracy to block refinancing and an $11 million sale, and accuses the lessees of illegal occupancy and unpaid rent.

Read at therealdeal.com