Hedge fund to seize Robert Taylor Ranch

The 112-acre Mandeville Canyon property is owned by radio executive Ken Roberts, who owes $27.5 million to a Connecticut hedge fund. Roberts alleges in court papers that the fund, New Stream Capital, engaged in a "loan-to-own" scheme to take over the ranch, formerly the home of actor Robert Taylor. Roberts, who had owned radio station KROQ, plans to turn over the keys on Monday. From forbes.com blogger Teri Buhl:

The interest on his $28 million principle payoff started at 16.5 percent but at one point in their four year legal battle it amounted to near 31 percent after late fees and a sliding default scale. The maximum interest allowed to be charged on a personal loan by California's usury laws is 10 percent. According to several witnesses in sworn testimony and depositions in the Roberts lawsuit filed in Los Angels Superior Court, New Stream isn't new to the 'loan-to-own" business.

No word on when the hedge fund would put the property on the market - or at what price. At one point, Roberts was asking $60-million, but he didn't get very far. From the WSJ:

The ranch compound, originally designed in 1956, has 17 bedrooms and has been marketed on and off for about that many years. It includes a one-story, 11,000-square-foot main residence with a hot tub, small outdoor pool, screening and casino rooms. Current owner Ken Roberts, former owner of Los Angeles radio station KROQ, paid $900,000 for the ranch in 1975 and says that since then, he has spent $20 million on renovations.Why hasn't the property sold? While the one-story main house is charming, there are nail holes in the doorway from Christmas decorations and peeling paint on the outbuildings. Some local brokers call it a tear-down.