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More than 65 acres of Mohamed Hadid in Beverly Hills set for bankruptcy auction



ThreeSixty Asset Advisors and Tranzon Asset Strategies retained by court-appointed trustee to complete sale

BEVERLY HILLS, Calif., February 24, 2022 /PRNewswire/ — After years of controversy, 65 acres of undeveloped residential land near Franklin Reservoir in beverly hillsalso known as Coldwater Development, is being sold under the authority of the United States Bankruptcy Court and at the direction of the court-appointed trustee, Sam Leslie.

The 6 plots, located just west of Coldwater Canyon and Royalton Drive, north of Sunset Boulevard, range in size from 4.92 to 21.29 acres and offer 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 2021. After nearly a year of contemplated sales, in December 2021 the bankruptcy court appointed an independent trustee to resume the liquidation process to ensure a fair, transparent and final disposition of the land.

Mohammad Hadid, owner/member of Coldwater Development LLC and Lydda Lud LLC, purchased two of the plots in 2006 and the other four in 2011 when he began grading for his development project. Since then, however, the project has been plagued with a number of development delays. According to a source, the delays were largely attributable to Hadid’s grand vision, which envisioned a large complex with eleven homes, at least one 100,000 square foot mega mansion, three guard towers and a helipad. This development plan both conflicted with local zoning ordinances and enraged locals who feared their prized hiking spot along the Hastain Trail would become an overdeveloped eyesore. In September 2011, a local, Ellen Scott, organized “Friends of the Hastain Trail” with six or seven like-minded hikers, and sued to stop development and obtain a prescriptive easement on the trail. While Hadid proposed to relocate and improve the trail for the benefit of hikers, the legal process persisted, resulting in a five-year development delay.

In 2016, Hadid won an appeals court ruling that resolved doubt over his or a future owner’s rights to develop the land, subject to meeting local zoning and permitting requirements; however, his ability to repay his debt on the property while financing the development eventually resulted in the trustee filing for bankruptcy and now the forced sale of the land.

The properties are being offered in a live, webcast auction conducted by ThreeSixty Asset Advisors and Tranzon Asset Strategies, who were retained by the court-appointed trustee and employed by Bankruptcy Court Order. The auction, billed as the Royalton Auction, will take place on March 24, each plot being offered both individually and then grouped into combinations according to the wishes of the bidders. Final offers will be awarded on the basis of the highest and best prices obtained.

“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 private property,” said Jeff Tanenbaum, chairman of ThreeSixty Asset Advisors, one of the companies managing the sale process. “Our mandate is to identify interested parties and sell properties to the highest and highest bidders, whether that be a single buyer or six individual buyers.” Mr Leslie echoes this view, adding that “the auction provides an equal opportunity for one or more buyers to purchase plots 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 room for tasteful development and hiking trails to co-exist.”

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

“These are spectacular plots, and some of the last of their kind given their incredible size, location and views,” points out mike walters, president of Tranzon Asset Strategies, the real estate auction company selling the property. “A recent valuation, which considered only three residential sites out of the six plots, estimated the value of the land after site development at $150 million and “as is” to $131 million. Of course, being auctioned, the value will ultimately be determined by the buyers.”

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

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

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SOURCE Tranzon 360