The Montecito

Flanked by exclusive restaurants, chic bistros, and theaters, The Montecito enjoys a desirable location two blocks from downtown Warner Center—the hub and business center of the western San Fernando Valley. A five-minute walk to Westfield Topanga & The Village shopping destinations and excellent freeway access to the rest of L.A. make it highly attractive to tenants.

In 2006, we bought a poorly maintained industrial building on a large lot, recognizing its potential as a high-end condo project geared towards Baby Boomers. A year later, rezoning was complete and the property’s value surpassed its purchase price, but we foresaw the housing crisis in the condo market and knew we’d have to change course to protect ourselves.

We quickly converted our strategy to selling the whole building as luxury apartments, partnering with Lehman Brothers to get the deal sold and closed. The new strategy worked. By doing the right thing at the right time, we took a small $200,000 loss versus the potential of a failed condo project with losses over $10 million—averting a major financial disaster.