Business Journal: Sales Not So Lofty For L Street Lofts

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(Sacramento, CA)
Monday, April 20, 2009

An award-winning, high-profile project is enduring some financial hard times, just like many others in the region. The L Street Lofts – home to Sacramento Mayor Kevin Johnson — had been hailed as a revitalizing project for midtown. But lender La Jolla Bank says developer Sotiros Kolokotronis — has failed to pay about $25 million as part of a construction loan for the project.

 The Rancho Santa Fe-based bank is attempting to foreclose on the project, claiming only 22 of the 92 condos have sold. And the legal battle has caused the close of the sales office, which apparently has not sold a unit since last summer, according to court documents.

Real estate officials applauded the L Street Lofts project when it debuted in late 2007, but that is also when the recession started — and the housing market collapsed, making the $389,000 to $750,000-plus condos look pricier. Kolokotronis would not comment about the lawsuit. This is Ron Trujillo for the Sacramento Business Journal.