Business Journal: Mechanics Bank Sues Local Developer
A high-profile developer in the Sacramento area is being sued by one of his banks.
Monday, September 8, 2008
Mechanics Bank has filed a lawsuit against Kobra Properties, claiming the Roseville-based development company has defaulted on a $21 million construction loan for an Elk Grove shopping center. The loan was secured by that land and five other Northern California properties, including the company’s new Roseville headquarters. Kobra owner Abe Alizadeh says he still plans to build the center in Elk Grove and expects to resolve the dispute with the bank during the next few weeks. It’s the second multimillion-dollar lawsuit filed against Kobra in as many months, and the third suit filed by a bank against the company since April. Alizadeh’s company owns 35 commercial developments, 71 Jack in the Box restaurants and 11 other restaurants, including the local TGI Fridays and Sonic locations.