After years of on-again, off-again construction, the conversion of an Angeleno Heights brick apartment building into pricey loft-style condos has hit another roadblock after the owners filed for bankruptcy protection amid lawsuits and talk of a possible sale. One of the owners of the 55-unit Brownstone Lofts told The Eastsider last November that the project – including an unfinished garage and swimming pool – was expected to be completed this spring once litigation was resolved. What the Brownstone official did not say was that the Brownstone Lofts LLC had filed for Chapter 13 bankruptcy protection in September as the San Mateo-based company attempts to reorganize, according to documents filed with the U.S. Bankruptcy Court in San Francisco.
The company’s assets include the Brownstone Lofts, valued at $20 million, and its creditors include Cathay Bank, which is owned $11.1 million in connection with the condo project, according to the court filing.
News of the bankruptcy emerged after the board of the Angeleno Heights historic district requested an update about the uncompleted project at Boylston Street and Bellevue Avenue, said Danny Muñoz, who heads the board. In response, a consultant working with the company said the owners has filed for bankruptcy but that a potential buyer had emerged. After more than three years of work, Muñoz and other Angeleno Heights residents are eager to see the project completed.
“It’s very important” to the neighborhood,” said Muñoz of the condos rising on the eastern tip of Angeleno Heights. “We would like to see them finish it.”
Whoever finished Brownstone Lofts should reconsider lower prices, said Muñoz. Previous sales information showed condo prices ranging from $375,000 to $1 million for what Muñoz considered relatively small units, with some condos facing the 101 Freeway.