Mohamed Hadid, the Los Angeles-based developer and reality TV personality, filed for bankruptcy last week on 2451 Summitridge Drive, his four-acre vacant lot in Beverly Hills — after incurring millions in IOUs.
Tree Lane LLC, the Hadid-controlled entity that owns the land, filed for Chapter 11 reorganization on April 25, according to a California bankruptcy court filing.
The LLC owes $54.6 million to creditors, according to the filing, including about $260,000 to various contractors. The entity’s interest in the property is worth about $35 million, the filing said.
Among notable creditors, there is Hadid himself – owing a loan in the amount of $1 million. And there is another creditor, Nabeel Zahid of Geneva, Switzerland, who provided a $3.4 million unsecured loan.
Tree Lane has no funds in its associated business checking account at Bank of the West, according to the filing.
Other creditors have already filed liens on the property. In September 2023, Bella Vista Estates’ Owners Association, a homeowners’ association, claimed a lien on the property, citing $48,893 in unpaid charges. By November, the HOA served Hadid’s entity with a notice of default, claiming $66,200 in unpaid charges.
The property, which is not insured, requires immediate attention due to “emergency erosion control” that “risks damage to other property,” according to the initial bankruptcy petition.
Neither Hadid nor his attorneys responded to requests for comment.
Hadid bought the property in 2015, but his plans for the land weren’t clear.
Skylark Capital Management sued Hadid in 2022 over the property, claiming he failed to finish the project, failed to pay property taxes and failed to make loan payments. He secured a $31.3 million loan from Skylark back in 2018, according to 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 developments like Strada Vecchia and 9650 Cedarbrook.
The same lawsuit cited other pending litigation alleging Hadid has failed to pay workers on his development projects at 2451 Summitridge and 9650 Cedarbrook.
The celebrity spec developer, who is no stranger to legal fights and bankruptcies came to Los Angeles in 1991 from Washington D.C., leaving behind a “foreclosed home, a shuttered hotel, a substantial office development business and a failed marriage,” TRD reported earlier. He’s known for building over-the-top mansions, though his plans for hundred-million-dollar homes haven’t always panned out.
In 2022, Hadid filed for bankruptcy on the 37-acre 9650 Cedarbrook project, which he once listed for $250 million. The site still remains the largest-ever permitted residential construction in Los Angeles.
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