November 2005 Land Investors' $21 million Park Highlands sale approved

By Caroline Salls

Pittsburgh, Dec. 15 - November 2005 Land Investors, LLC received court approval to sell its property to KBS SOR Park Highlands, LLC for $21 million, according to a Dec. 15 filing with the U.S. Bankruptcy Court for the District of Nevada.

However, BOH Park Highlands NV, LP filed a motion on Dec. 16 asking the court to reconsider and vacate the sale order so it can submit a "significantly higher and better offer" for the property.

BOH Park Highlands said its offer will increase the value received by November 2005 Land Investors by more than $4.9 million, or about 25% more than the approved transaction.

Specifically, BOH Park Highlands said it has offered to purchase the property for $21 million in cash and waive $4.98 million in claims.

BOH Park Highlands said it did not originally submit this offer because it was discouraged from making an offer that included a waiver of claims so the value of all bids could be compared on an "apples-to-apples" basis.

According to BOH Park Highlands' motion, $4.98 million of the sale proceeds were to be held pending resolution of competing interests and liens of BOH and the company's first-lien lenders.

Under the Dec. 15 sale order, next best bidder Park Highlands Acquisition, LLC would have the authority to close the sale if KBS SOR does not do so by Dec. 30 for any reason except a default by November 2005 Land Investors.

As previously reported, a group of November 2005 Land Investors LLC lenders hired Grubb & Ellis Co. to promote the auction of 1,340 acres of undeveloped land known as Park Highlands in North Las Vegas, Nev.

According to a Nov. 2 Grubb & Ellis news release, the banks hold a 48% interest in the $178.9 million defaulted loan on the property, which is being sold via bankruptcy.

With no initial bids permitted, the live absolute auction was held on Dec. 12.

Dallas-based November 2005 Land Investors filed for bankruptcy on July 6. Its Chapter 11 case number is 11-20704.

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