Mohamed Hadid has filed a case against developer Zach Vella, alleging a “loan to own scheme” in relation to a partially built Beverly Hills mansion that was on the market for $250 million.
The property, at 9650 Cedarbrook Drive, is a planned 78,000-square-foot home that held the distinction of being Los Angeles County’s most expensive residential listing. Treetop Development, LLC, the Hadid-controlled entity that owns the property, filed for Chapter 11 bankruptcy in August.
In a complaint filed in California bankruptcy court this week, Hadid claims that Vella’s Skylark Capital only gave him a portion of a promised $92.8 million loan for the property. Hadid said that the funds were for paying off $20 million in debt and for financing construction on the 37-acre lot, supposedly the largest-ever permitted residential development in Los Angeles, according to a listing on Zillow.
“Defendant Skylark agreed to the loan terms, allowed enough funds to be released so as to pay off the prior debt, and then shortly thereafter, refused to pay the remaining construction fund draw requests (either by refusing to fund timely, refusing to fund at all on certain draws, or refusing to fund such draw requests in full). This in turn led to the construction project not being timely completed and Treetop unable to timely pay the subcontractors performing the work,” the court filing read.
Several contractors have made claims against the property since 2019. In August, a company called Golden Blue Builders Group filed for a $4.8 million lien on the site, property records show.
Hadid’s suit claims that Skylark Capital only provided $29 million in financing. but are now asserting that they are owed $63 million. Skylark, which the suit said should have been “mere disinterested construction lenders,” also allegedly schemed with a neighboring property owner to jointly develop the asset.
The complaint comes just days after Skylark Capital petitioned the court to appoint a trustee because of Hadid’s “long history of deceit and incompetence.” According to court documents, Skylark told the judge that Hadid’s involvement is a threat to the successful reorganization of the asset.
Skylark Capital did not immediately respond to a request for comment.
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