Playa Vista lawsuit

This one popped over the wires a few days ago, but it's still worth noting: The owners of a 64-acre property at Playa Vista have been sued by KeyBank National Association, which helped finance the purchase. The bank wants a receiver for the debt and foreclosure. The owners are private equity firm Tishman Speyer and Walton Street Capital LLC - they bought the project in 2007 while the real estate market boomed. Tishman also faces debt problems concerning a huge Manhattan apartment complex. From Reuters:

A spokesman for Tishman Meyer said that debt on the Los Angeles site is secured exclusively by the property, and that its status does not impact the company's other buildings or properties. Tishman Speyer had planned to develop the Campus at Playa Vista with offices, restaurants and retail space and started construction in July 2008. As of Oct. 16, the owners of the property owed $156 million on the original loan of $147 million, which KeyBank and the Royal Bank of Scotland (RBS.L) PLC made in February 2007, according to the lawsuit.

The property is on the site of the famous Spruce Goose hanger. Nearly 2 million square feet of office and commercial space has been entitled, though nothing has been developed so far. Given the troubles in commercial real estate, I wouldn't hold my breath.Bloomberg also had a story on the lawsuit.