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Blackhawk Plaza could find itself in new hands once again, with a court hearing in southern California later this month on a request to put the property into receivership status as a lender seeks to go after a $5 million loan they say that the property owners have defaulted on.
Ramanujan Group LLC, which purchased the plaza in 2020 for $38.3 million, is being accused by its creditor Nano Banc of defaulting on the loan in a complaint filed last summer in Orange County alleging a breach of guaranty agreements and seeking the appointment of a receiver.
The move came amid mounting legal and financial trouble for Andrew Stupin, the owner of Ramanujan Group, who filed for bankruptcy early last year. Bankruptcy proceedings concluded in October.
Representatives for the plaza did not respond to a request for comment as of press time. And while no public announcements have been made from owners or management about turmoil behind the scenes at one of the San Ramon Valley’s most prominent retail hubs, its uncertain future is something that has become evident to residents and shoppers as businesses have departed in recent years and vacancies have grown.
At Draeger’s, the latest prominent tenant to announce its departure from the plaza, the property owners’ financial trouble was an open secret among shoppers who flocked to the store on a sunny Friday afternoon, seeking deals on the increasingly empty shelves in the business’s final weeks – as well as information and solace on the closure.
Just as prominent as some fitting pieces of the soundtrack playing over the grocery store’s speakers that day – including Semisonic’s “Closing Time” and Fleetwood Mac’s “Landslide” – was buzz about Stupin’s bankruptcy, the future of the plaza, and concerns over its apparent demise.
While the bankruptcy proceedings and receivership hearings in Orange County are far away from home, trouble at the plaza has been evident in both its increasing vacancy rate, buzz from residents on social media and in person, and five different cases in Contra Costa County court between Ramanujan Group and its tenants.
One of those complaints was filed last summer by the owner of the sushi restaurant Blue Sakana – one of the remaining businesses overlooking the plaza’s vast duck pond and ornate architecture – alleging a breach of contract, intentional interference with contractual relations, and unjust enrichment.
Attorneys for Jung Choi allege that he and other business owners were required to make payments for marketing and promotional activities that were never implemented, with the fees never being reimbursed despite not being used for their intended purposes, as well as denying access to insurance benefits that were also allegedly paid for by the plaintiff.
In Choi’s case, attorneys estimate that these factors cost him more than $750,000.
Choi’s attorneys also contend that the owners interfered in his attempt to sell the business by “extracting consideration” that Ramanujan Group was not entitled to, for more than $300,000 in additional loss. They allege that the LLC unjustly enriched itself by overcharging more than $200,000 in payments from Choi.
That complaint is continuing to make its way through the local court, as well as a breach of contract complaint from Kiki Brows, alleging that the owners violated the contract by seeking to add an additional term to the lease upon renewal, ultimately declining to renew the lease when that term – which stipulated that the longtime beauty shop get an agreement from a competitor in the same plaza – wasn’t agreed to.
Meanwhile, other business owners at the plaza have found themselves as defendants in complaints initiated by Ramanujan Group. The company filed a complaint for damages against the owners of the Peasant and the Pear and an unlawful detainer against Crunch Fitness in 2021, and a breach of contract complaint against Nekter Juice in 2022, all of which have since been dismissed.
In the Orange County receivership case, Nano Banc argues that it has access to the property according to the terms of the defaulted loan agreement, for the sake of “protecting and preserving” it, and for collecting the more than $5 million in outstanding debt via rental revenues or a sale of the plaza.
While attorneys for Nano Banc point to a number of different avenues that could be used to recoup the loan debt from Ramanujan Group, District 2 Supervisor Candace Andersen said that she expects the property will be sold, depending on the outcome of the foreclosure case.
An Orange County judge is set to hear a motion to appoint a receiver on Jan. 30, as well as a demurer to a cross complaint from Ramanujan Group and Stupin on Feb. 6 during a case management conference.
Editor’s Note: A previous version of this story cited the wrong band behind the song “Closing Time.” Embarcadero Media regrets the error.
