CitiApartments: Put a Fork in, Cause It’s Done – Your Chance to Bid on Remnants of Former Real Estate Empire

Your Socketsite is up on things related to CitiApartments.

Check it.

“The sale will begin at 2:00 p.m. local time on December 12, 2011 at the offices of Stein & Lubin LLP, 600 Montgomery Street, 14th Floor, San Francisco, California 94111.”

Which will you bid on come December?

78 Buchanan Street
233-241 Church Street
252-258 Church Street
950 Franklin Street
1844 Irving Street
1401 Jones Street
2677 Larkin Street
2075-2083 Market Street
2099 Market Street
1870 Pacific Avenue
500 Stanyan Street
645 Stockton Street
1340-1360 Taylor Street
1320 Washington Street
1461-1465 Burlingame Avenue (Burlingame)

A famous logo no more:

All the deets, after the jump

“Membership Interests in Entities Owning Various Apartment Buildings in San Francisco, California

NOTICE IS HEREBY GIVEN that the collateral described below will be sold to the highest
bidder at a PUBLIC SALE by Veritas-B Mezz B14, LLC (“Secured Party”), the secured
party under those certain four Pledge and Security Agreements dated March 2, 2007
(collectively, the “Pledge Agreements”) in favor of UBS Real Estate Investments Inc.,
predecessor-in-interest to the Secured Party, each of which was executed by one of
the following respective debtors: 950 B14 Mezz DE, LLC; FEL Properties B14 Mezz
DE, LLC; LSL Properties B14 Mezz DE, LLC; and FEL-WRL Properties B14 Mezz DE, LLC
(collectively, “Debtors”). The collateral to be sold is security for certain indebtedness
owed to Secured Party by the Debtors including, among other things, the Debtors’
indebtedness under four Mezzanine Loan Agreements and related Promissory Notes
each dated March 2, 2007 and executed by Debtors in the original principal amounts
of $2,610,000, $5,380,000, $21,190,000 and $520,000, respectively (collectively, the
“Loans”). Debtors are in default under the Loans.

The Collateral: The collateral to be sold at such public sale consists of the Debtors’
respective membership interests in the limited liability companies listed below
(the “Property LLCs”), which are believed to constitute 100% of the issued and
outstanding membership interests in each such Property LLC, together with all
of the other “Collateral” as such term is defined in the Pledge Agreements (such
membership interests and other Collateral is hereinafter referred to, collectively, as
the “Membership Interests”). Based upon information provided to the Secured Party,
the Secured Party understands (but without any warranty or representation as to the
accuracy or completeness of the following matters) that (i) each Debtor owns one
hundred percent (100%) of the Membership Interests in one of the following Property
LLCs; (ii) each such Property LLC owns in fee the real property(ies) commonly known by
the street address listed next to its respective name below, all of which are apartment
buildings located in San Francisco, California (unless otherwise indicated); and (iii)
each of the real properties listed below is encumbered by a deed of trust that secures
the Property LLCs’ total aggregate indebtedness to a senior mortgage lender in the
original principal amount of $103,300,000. The Property LLCs and the respective real
properties owned by them are:
950 B14 DE, LLC: 950 Franklin Street.
FEL Properties B14 DE, LLC: 2075-2083 Market Street; 233-241 Church Street; 252-258
Church Street; and 2099 Market Street.
LSL Properties B14 DE, LLC: 2677 Larkin Street; 1401 Jones Street and 1320 Washington
Street; 78 Buchanan Street; 1870 Pacific Avenue; 500 Stanyan Street; 645 Stockton
Street; 1340-1360 Taylor Street; and 1844 Irving Street.
FEL-WRL Properties B14 DE, LLC: 1461-1465 Burlingame Avenue, Burlingame,
California.

Date and Time of Sale: The sale will begin at 2:00 p.m. local time on December 12, 2011
at the offices of Stein & Lubin LLP, 600 Montgomery Street, 14th Floor, San Francisco,
California 94111. All interested prospective purchasers are invited to attend and bid at
the sale. The Secured Party may adjourn, cancel and/or reschedule the date, time and/or
location of the sale from time to time, without written notice or further publication, by
announcement at the time and place appointed for such sale, or any adjournment.

Bidding Procedure: The Secured Party reserves the right to accept or reject any bid
and shall not be obligated to make any sale pursuant to this notice. The Secured Party
reserves the right to bid and to become the purchaser at the sale to be made pursuant
to this notice and to credit against the purchase price of the Membership Interests any
and all indebtedness of the Debtors to the Secured Party. In order to bid at the sale,
prospective purchasers (other than Secured Party) will be required to provide a bid
deposit of $50,000 in the form of one or more cashier’s checks or other immediately
available funds payable to Secured Party (“Acceptable Checks”), which deposit will be
returned if the person making the deposit is not the successful bidder. The entire amount
bid (other than a credit bid by the Secured Party) shall be due upon the conclusion of the
sale in the form of one or more Acceptable Checks. The Membership Interests may be
unregistered securities under the Securities Act of 1933 and, accordingly, any purchaser
of Membership Interests must be an accredited investor and will be required to make
appropriate representations as a condition to consummation of the sale. Certain
legal opinions and property manager qualifications will also be required by the senior
mortgage lender. Consummation of the sale will be made upon receipt of payment
of the full bid price and by delivery of appropriate transfer documents, specifying the
transfer “as is, where is, with all faults” and without representation or warranty of
any kind. In the event that the Secured Party is unable for any reason to consummate
the sale of the Membership Interests to the successful bidder, its sole obligation to
the bidder shall be the return of the principal amount of the bidder’s deposit, without
interest. Other terms and conditions may be announced at the time of sale, and any of
the foregoing may be waived or modified by the Secured Party in its discretion.

Further Information: Information relating to the Membership Interests is available
for review by qualified prospective bidders by contacting the persons named below.
All persons receiving or examining non-public information will be required to enter
into nondisclosure agreements. To request further information about the Membership
Interests, please contact either Veritas Investments, Inc. or Stein & Lubin LLP at:
Veritas Investments, Inc.
2740 Van Ness Avenue, Suite 310
San Francisco, California 94109
Attn: Yat-Pang Au and Fernando Siu
Tel.: 415.578.7610
Email: pang@veritasinv.com
Email: fs@veritasinv.com
Stein & Lubin LLP
600 Montgomery Street, 14th Floor
San Francisco, California 94111
Attn: Mark Lubin and Jennifer Leung
Tel.: 415.981.0550
Email: mlubin@steinlubin.com
Email: jleung@steinlubin.com

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