A Los Angeles County Superior Court judge has ended the receivership overseeing a prominent Laguna Beach real estate investor’s companies, including the entity managing Hotel Laguna.
Judge James C. Chalfant dismissed the case brought by Delaware-based Coastline Loans LLC, the latest creditor for a group of entities controlled by 4G Ventures CEO Mohammad Honarkar, according to the Sept. 14 order.
In June, Coastline filed a complaint seeking payment on a $175 million loan, accrued interest, and attorneys fees. The creditor announced its desire to drop the lawsuit in a motion filed earlier this month.
“Plaintiff and Borrowers have resolved their difference and now wish to have the Receiver discharged,” Coastline Loans’ attorney Todd Normandin wrote in a court briefing.
This was the third court-ordered receivership to take custody of Honarkar’s real estate holdings within the last year. This time the receiver was charged with overseeing 39 properties, including multiple commercial buildings and short-term rentals in Laguna Beach.
In July, a Los Angeles County judge appointed Covina-based receiver Carl G. Petta, authorizing him to collect all profits from Honarkar’s properties, according to court records. Honarkar downplayed the impacts of the latest receivership at that time.
“Discharging the receiver was the final step in concluding my divorce proceedings, which are now entirely complete,” Honarkar said in a prepared statement Wednesday. “All of my attention and energy is now focused on re-opening the Hotel Laguna to the public after an extensive renovation.”
The Laguna Beach Co. plans to open Hotel Laguna’s doors for “sneak peeks” next week, and launching the new restaurant shortly after, Honarkar said.
The complaint by Coastline Loans doesn’t mention the divorce proceedings.
According to Petta’s final report to the court, this latest receivership was largely uneventful compared to the more dire accounts described by attorney Blake Alsbrook during his stint as receiver starting last January.
“The Court Receiver did not have access into the interior of any of the above properties,” Petta wrote in a final report. “However, the Court Receiver received the cooperation of 4G Ventures’ property manager of the above-mentioned properties and has been able to oversee the daily operations with their help.”
Petta didn’t respond to a request for comment Tuesday.
The court-appointed receiver reported discovering the 39 properties under his stewardship are encumbered by more than $284 million in debt owed to several creditors. The vast majority of this debt was acquired by Huntington Beach-based Coastline Loans LLC earlier this year from a company controlled by Dornin Investment Group following a court-approved refinance deal.
Following the state’s COVID-19 restrictions on indoor activities earlier this year, Honarkar’s hospitality properties reported substantial losses, according to court records. However, with tourists returning this summer the economic outlook has been rosier.
City officials recently removed the final bureaucratic hurdles for Honarkar to reopen Hotel Laguna’s refreshed lobby and restaurant. A reopening date wasn’t announced by Wednesday.