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