Sales of Condos at L.A. Depot Halted

Standard Pacific Corp. has suspended sales of a downtown Los Angeles condominium complex and is letting buyers get their deposits back, citing construction delays by the project’s builder.

The project, called Axis at Union Station, is one of the Irvine-based home builder’s first forays into urban housing.

The complex has been touted as a prime example of so-called transit-oriented development because of its location next to a transportation hub.

But since the project got underway two years ago, competition has sprung up from other developments along the Red and Gold rail lines in neighborhoods considered more desirable.

Standard Pacific sent letters to buyers last week giving them the option to withdraw from their sales contracts without penalty.

The builder has sold 41 of the 272 units under construction. At least one buyer, a downtown executive who declined to be named because of a contract confidentiality clause, was disappointed that he wouldn’t be moving in as scheduled next month.

He and a partner were among the first to sign contracts in February, paying more than $600,000 for a unit.

“We were two weeks away from closing,” he said. “I’m not sure what to do.”

Citing issues it described as beyond its control, Standard Pacific said in its letter to buyers that “schedule delays have created significant uncertainty” about when the condos would be completed and whether the company would be able to acquire title to the property.

Lincoln Property Co. of Dallas owns the site and is building the complex. Lincoln is under contract to sell the project when completed to Standard Pacific.

Lincoln Senior Vice President Reg Delponte said that there had been “minimal” delays that weren’t unusual but that the company would be able to comply with its contract with Standard Pacific. He said he couldn’t say when the project would be finished.

In a departure from its usual practice, Standard Pacific is not “actively participating” in the construction and has no control over it, said Alan Boeker, president of the company’s Los Angeles division.

“We’re sitting by as an observer,” he said.

Both companies face a lawsuit filed by a subcontractor claiming breach of contract.