Thank you for sharing!

Your article was successfully shared with the contacts you provided.

LOS ANGELES-A bankruptcy judge here has given the school district permission to forge ahead with its acquisition of the famed Ambassador Hotel for more than $76.5 million, just 24 hours after the proposed transaction was thrown into limbo by a higher offer from a private-sector developer.

The LA Unified School District struck a preliminary deal last month to buy the nearly 24-acre Mid-Wilshire site to build a sorely needed school for the area, a mostly moderate-income neighborhood where the population has exploded in recent years. The hotel, once a favorite hangout for celebrities and later the site of the 1968 assassination of Robert F. Kennedy, is now mostly vacant.

The district reached a deal with the project’s owner, the bankrupt Wilshire Center Marketplace, to buy the property last month. But the transaction was temporarily blocked earlier this week by federal Bankruptcy Judge Samuel L. Bufford after Beverly Hills-based Casden Properties said it was willing to pay about $15 million more than the district had offered.

Casden’s last-minute offer angered district officials and even Mayor James K. Hahn, who charged that the company was putting its own profits over the interests of children. But Casden officials now say talks with the seller have stalled, in part because they would not meet Wilshire Center’s demand that Casden indemnify Wilshire Center against a lawsuit that the district could file to block the sale.

With the Casden deal apparently dead, Judge Bufford ruled that the school district could move forward with its purchase. Though the sale could close relatively quickly, the district has not announced a timetable for construction to begin.

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?

Dig Deeper


Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2021 ALM Media Properties, LLC. All Rights Reserved.