ZOM Living Affiliate Enters Chapter 11 Following $308M Judgment

By Majid Radaei, RadCRE · · Industry Insights

A ZOM Living entity has filed for Chapter 11 bankruptcy in Florida following a $308.6 million court judgment, planning a substantial asset sale.

Litigation Fallout Triggers Chapter 11 Restructuring

In a major development within the national commercial real estate landscape, an affiliate of Winter Park, Florida-based developer ZOM Living has filed for Chapter 11 bankruptcy protection [1]. The reorganization petition, filed on October 30 in the U.S. Bankruptcy Court for the Middle District of Florida, marks the direct fallout of a massive $308.6 million legal judgment entered against the firm earlier this spring [1]. Additional filings and reporting cite judgment-related liabilities reaching up to $323 million [2].

Led by CEO Greg West, ZOM Living is an established, prolific developer and investor active across the multifamily and senior housing sectors [1]. Rather than stemming from direct underlying property-level debt defaults or operational insolvencies, the Chapter 11 filing was precipitated by an extensive legal battle in Arizona involving Gray Development [1]. Gray Development alleged that ZOM improperly utilized proprietary information prior to acquiring development sites on its own [1].

Asset Dispositions and Restructuring Path

According to court filings, the debtor entity intends to pursue a structured path forward under bankruptcy court oversight, aiming to sell substantially all of its assets [1]. Concurrently, the Chapter 11 process is being utilized to manage liquidity and fund ongoing legal efforts to fight and overturn the nine-figure judgment [2].

For institutional sponsors and market participants, corporate-level litigation liabilities of this magnitude can severely impair entity-level capitalization. When an adverse ruling exceeds operational cash reserves or liquidity facilities, Chapter 11 provides a temporary shield to halt creditor execution, allowing the entity to coordinate a formalized asset sale process while preserving appeal pathways [1, 2]. In the context of large multifamily and senior housing pipelines, court-supervised asset sales will determine how specific parcel holdings, site control rights, and project equity interests are liquidated or recapitalized [1].

RadCRE Perspective

"When substantial non-operational liabilities or court judgments hit institutional development platforms, Chapter 11 is frequently leveraged as a defensive mechanism to stabilize the enterprise," notes Majid Radaei, Founder & Principal Broker of RAD Commercial Realty. "In situations like ZOM Living's affiliate filing, the court-supervised asset sale becomes a critical focal point for capital allocators. These processes require rigorous underwriting to parse litigation encumbrances from the underlying asset-level fundamentals, creating targeted acquisition and recapitalization opportunities for well-capitalized multifamily investors."

Advising on Distressed Assets and Capital Restructuring

As corporate legal liabilities and capital market pressures continue to intersect across commercial real estate, asset dispositions emerging from bankruptcy proceedings demand specialized advisory expertise. RadCRE works closely with institutional sponsors, special servicers, and private investors to underwrite, navigate, and execute distressed asset transactions, structured recapitalizations, and Chapter 11 asset dispositions across major property sectors.

Tags: commercial real estate bankruptcy, ZOM Living Chapter 11, multifamily asset dispositions, distressed real estate restructuring

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