Downtown Sunnyvale Residential v. Wachovia Bank Nat. Assn. CA6

I. FACTUAL AND PROCEDURAL BACKGROUND

A. The loan, default and the complaint for judicial foreclosure In 2007, RREEF America REIT III Corp. MM and RREEF America REIT III Corp. MM TRS (collectively RREEF), along with SHP San Jose, LLC (SHP), formed the Borrowers in order to acquire and develop a combined retail, residential and commercial property in Sunnyvale, California. RREEF was designated the manager of DSMU and held a 95 percent interest in that entity, with the remaining 5 percent interest held by SHP. DSMU entered into a development management agreement with Peter Pau, doing business as Sand Hill Property Company (Pau), to develop the property. Peter Pau is the principal of SHP. That same year, Wachovia4 loaned the Borrowers $108.8 million, secured by a deed of trust, to develop the property. Pau assigned to Wachovia “all of its right, title and interest” in the development management agreement pursuant to which it was developing the property.

2 Further unspecified statutory references are to the Code of Civil Procedure. 3 “SLAPP” stands for “ ‘strategic lawsuits against public participation.’ ” (Navellier v. Sletten (2002) 29 Cal.4th 82, 85 (Navellier).) 4…