In Re Oceanside Mission Associates

MEMORANDUM DECISION

The senior secured creditor contends that this is a “single asset real estate” case and that the debtor must be held to the requirements of newly enacted Bankruptcy Code § 362(d)(3).

This Court has jurisdiction to determine this matter pursuant to 28 U.S.C. § 1334 and General Order No. 312-D of the United States District Court for the Southern District of California. This is a core proceeding pursuant to 28 U.S.G. § 157(b)(2)(G).

FACTS

The debtor, a limited partnership, owns undeveloped real property which generates no income. The property is subject to secured claims which exceed $4,000,000, but may be worth less than $4,000,000. The senior secured creditor has asked for relief from the automatic stay in part on the grounds that the property is “single asset real estate” and that the debtor has failed to comply with Bankruptcy Code § 362(d)(3).

ANALYSIS

Section 218 of the Bankruptcy Reform Act of 1994 added two new sub-sections to the Bankruptcy Code to deal with the “single asset real estate” case. Section 101(51B) defines “single asset real estate” and section 362(d)(3) provides that the court shall grant relief from stay with respect to an act against…