Tax
Jun. 5, 2023
LA’s ‘mansion tax’ penalty on lenders arises in foreclosure
The Reuben brothers tried to complete their foreclosure on the Century Plaza redevelopment by March 30 in order to avoid paying the so-called “mansion tax,” a 5% tax assessment on big-ticket property transactions that went into effect on April 1 in the city.
British billionaires and real estate investors David and Simon Reuben ruffled some big feathers in Los Angeles last year when they moved to foreclose on the luxury Century Plaza redevelopment in Century City after its developer, Michael Rosenfeld, defaulted on $1.8 billion in loans for the project.
Alarmed at the prospect, investors in the $2.5 billion project sued the Reubens in Los Angeles, accusing them of reshuffling the debt stack and ...
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