Bob Shallit
L Street Lofts project back on track
Monday, Jun. 8, 2009
http://www.sacbee.com/shallit/story/1929685.html
One of Sacramento city's most bitter - and bizarre - legal squabbles is ending.
Developer Sotiris Kolokotronis last week settled his nine-month dispute with a Los Angeles investment group that backed his prestigious, eight-story condo complex at 1818 L St.
New investors have come in and the L.A. firm - Resmark Equity Partners LLC - is now "out of the picture," Kolokotronis says. Talks are under way to settle a default notice filed by the project's construction lender, La Jolla Bank, and a suit by general Sacramento contractor Otto Construction, says Charles Trainor, Kolokotronis' attorney.
As a result, sales of condo units, which were halted during the Resmark dispute, can resume.
The troubles began last summer when Resmark filed a lawsuit charging that sales were lagging and sought control of the project. In September, Resmark representatives tried to physically take possession of the property, leading to an angry standoff that drew police to the condo site.
"In all the years I've been (in development), I've never experienced anything like this," Kolokotronis says of the dispute. (Resmark officials did not return a call for comment.)
For Kolokotronis, the dispute was all the more frustrating because Resmark was investing money for the Sacramento-based
California Public Employees Retirement System, which he had hoped would be more patient with the project's progress.
"That was disappointing." he says.
Kolokotronis and his new, undisclosed partners now face the challenge of selling the remaining 70 units at the 92-unit L Street Lofts complex where Sacramento King Kevin Martin is an owner and Mayor Kevin Johnson is leasing with an option to buy.
"This is not a great market," the developer says. But he's optimistic because the most expensive units already have been sold and a marketing campaign - aborted by the legal battle - can now move forward.
"I think we will be very successful," he says.