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News & Press: Industry News

Large Southern California Real Estate Developer Files Bankruptcy

Tuesday, December 19, 2017  
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The Woodbridge Group, which owns millions of dollars of Southern California real estate, has filed for bankruptcy protection. The business model of Woodbridge involved raising money from unit investors along with the sale of notes to retail investors, supposedly secured by first-lien positions on Woodbridge properties.

The United States Securities and Exchange Commission has been reportedly investigating Woodbridge for possible securities law violations.

Thousands of retail investors may lose their entire investment. The notes alone are estimated to be worth around $750 million, and about $226 million of units were sold to retail investors. In a Hollywood connection, in 2016 an affiliate of Woodbridge purchased the Owlwood estate in Holmby Hills, whose previous owners include Tony Curtis and Sonny and Cher. The property was purchased for $90 million, one of the highest priced properties sold in Los Angeles County. The property has recently been on the market.

California Land Title Association

1215 K Street #1816 Sacramento, CA 95814-3905
Email:  |  Phone: 916-444-2647  |   Fax: 916-444-2851