|
Getting your Trinity Audio player ready...
|
By: Ellen Cans
Mohamed Hadid, the Los Angeles-based developer and reality TV personality, filed for bankruptcy last week on 2451 Summitridge Drive— a four-acre vacant lot in Beverly Hills. As reported by the Real Deal, Tree Lane LLC, the entity connected to Hadid which owns the California lot, filed for Chapter 11 reorganization protection, per a US Bankruptcy court filing.
The Real Deal report says that the LLC owes some $54.6 million to creditors, including roughly $260,000 to multiple contractors for work they completed. The bankruptcy filing says that the property is worth about $35 million, meaning many of the creditors will be left with nothing after the property is sold. One of Tree Lane’s creditors is Hadid himself, having reportedly loaned $1 million, per the filing. Another creditor is Nabeel Zahid of Geneva, Switzerland, who provided an unsecured loan in the amount of $3.4 million.
There are already liens on the property. In September 2023, Bella Vista Estates’ Owners Association, a homeowners’ association, filed a lien on the lot, claiming $48,893 in unpaid charges. By November, the HOA sent the LLC a notice of default, citing $66,200 in unpaid dues. Also, the property, which is not insured, requires immediate attention due to “emergency erosion control” that “risks damage to other property,” per the initial bankruptcy petition. The Chapter 11 filing shows that the LLC has no funds in its business checking account which is at Bank of the West.
Hadid had purchased the vacant Beverly Hills land in 2015. He did not, however, file for permits or announce his plans for the site. In 2018, he had secured a loan from Skylark Capital Management for $31.3 million for the site. Skylark sued Hadid in 2022, claiming he didn’t make loan payments, failed to finish the project, and failed to pay property taxes for the property, per the 2022 suit.
“Unfortunately for creditors like Skylark, Hadid, in recent years, has been an abysmal failure in real estate development,” the suit alleged, citing other failed project developments including Strada Vecchia (the partially built Bel Air mansion which was sold eventually), and 9650 Cedarbrook (a 27 acre residential lot in Beverly Hills which he filed for bankruptcy in 2022 and which is still listed for sale asking $68 million).
The celebrity luxury home and hotel developer has most famously appeared on The Real Housewives of Beverly Hills, as the ex-husband of Yolanda Hadid. He is the father of models Gigi and Bella Hadid, who have been in the news themselves of late for their support of the Pro-Palestinian cause.
As previously reported by the Real Deal, Mr. Hadid came from Washington, D.C. to Los Angeles in 1991, leaving behind a “foreclosed home, a shuttered hotel, a substantial office development business and a failed marriage.” He has been known for planning over-the-top mansions, though his plans have not always come to fruition.
