Michael Jackson averts sale of ranch
A foreclosure sale on Pop star Michael Jackson’s Neverland Ranch set for this week was averted after a loan on the California property was sold to Colony Capital, a large real estate investment firm.
The loan, reported to be about $23.5 million, had been held by Fortress Investment Group, a New York-based private equity and hedge fund group. The 2,700-acre ranch in Santa Barbara County was slated to be auctioned off on May 14 after Jackson defaulted on loan payments.
Colony, a Los Angeles-based firm that has invested more than $39 billion since its founding in 1991, is “very comfortable” holding the loan while it negotiates payment terms, a person familiar with the situation said. Representatives of Jackson and Colony declined to comment. A Fortress representative could not be reached for comment.