Project cost $60 million to build, faced $50 million in bankruptcy court claims
SAN RAFAEL — Real estate investors today said they bought 82 recently completed luxury apartments in San Rafael in a $36.5 million bankruptcy court sale.
Acting as 33 North Associates, LLC, New York-based investor The Praedium Group and Los Angeles-based financier Empire USA, LLC, purchased the 33 North development at 33 San Pablo Ave. on June 12 in a Section 363 bankruptcy sale, according the players and public records.
Finished earlier this year, 33 North cost nearly $60 million to build.
The developer — MC2 Capital Partners, LLC, owned by real estate developer Tom Monahan and his San Rafael-based Monahan Pacific Corp. — filed for Chapter 11 reorganization in December, listing $43.8 million in secured loans from U.S. Bank and 33 North SP, LLC of San Rafael and $6.34 million in unsecured claims from dozens of contractors, professional services firms and suppliers, according to public records.
U.S. Bank, which acquired project construction lender Pacific National Bank via the FDIC in October 2009, reportedly sued the developer last August on allegations of nonpayment of a $35 million loan.
The bankruptcy court in May said the bank would get $33.4 million and 33 North SP, $200,000, from any sale proceeds.
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