One of the best-known buildings in Downtown Sacramento from the early 2000s real estate boom appears to have financial difficulty, with an ownership group filing for bankruptcy last week, the Sacramento Business Journal reported. According to the filing in U.S. Bankruptcy Court for the Central District of California, the entity known as 12th & K Partners LLC, which is connected to the Cathedral Building on the northwest corner of 12th and K streets, filed for chapter 11 bankruptcy Thursday, claiming both assets and liabilities in the range of $10 million to $50 million. Bob Clippinger, president of Los Angeles-based Clippinger Investment Properties Inc., is the signatory to the filing, which states the location of principal assets as 1020 12th St. in Sacramento. In 2019, 12th & K Partners appeared to sell at least a portion of the Cathedral Building to another investor. Records show the Ziegelman Family Trust bought 1131 K St. for $1.59 million. That amount, however, seems unlikely to be for the entire building. At that time, 12th & K Partners was also facing pressure from lenders over the note on the building, which was $11.1 million in arrears as of a 2017 foreclosure filing in Sacramento County Superior Court. Plaintiffs in that case filed to have it dismissed a few months later. However, there appears to be another foreclosure pending against the same property, by SBS Trust Deed out of Westlake Village. According to a listing for the filing on foreclosure database Superior Default Services Inc., 1020 12th St. has been set to go to auction several times in recent months, most recently set for Jan. 13, with a listed sale price of $11.8 million.
