Sandstone Properties, the developer behind the ambitious Silicon Beach Live apartment complex project in Westchester near Playa del Rey, is facing imminent foreclosure after defaulting on a substantial $97 million loan tied to the venture. The move comes as TPG RE Finance Trust, a publicly traded firm with backing from private equity heavyweight TPG, moves to secure its investment.
The situation unfolded after Sandstone Properties fell behind on its financial obligations, failing to make debt payments in December, January and February. As a result, TPG RE Finance Trust initiated foreclosure proceedings, aiming to recover the outstanding loan amount, which stands at approximately $81 million, according to a report from The Real Deal. The foreclosure auction is slated for August 17.
Eri Kroh’s Sandstone Properties had initially laid out plans for the Silicon Beach Live apartment complex at 6733 South Sepulveda Blvd. back in 2015. The 176-unit project secured funding over the years, with a $57.5 million construction loan from Pacific Western Bank in 2019 and a $24.3 million preferred equity investment from Harbor Group International. In 2022, TPG RE Finance Trust stepped in to refinance the property with a substantial $97 million loan.
The project was later completed in April of this year but is not currently available for rent.
“The site is a one-minute drive from the Howard Hughes hanger that is home to Google and is across the street from a re-imagined $1.4 million office campus owned by Equity Office and the $30 million renovation of the Promenade with 15 new restaurants,” a landing page for the property on Sandstone’s website states. “This new apartment project will have extensive amenities to attract the demographic employee in the tech media sector. Amenities will include a spacious pool with cabanas, a game room, a gym and yoga room, a technology center and a rooftop observation deck/entertainment area.”
Sandstone Properties is a Santa Monica-based firm founded in 1994. Since that time, the company has grown its portfolio to include $650 million worth of office, retail, industrial, multifamily and hospitality real estate.
