ZOM Living Files Chapter 11 Following $308.6M Judgment

By RadCRE Research · 2026-11-07 · Market Updates

A ZOM Living affiliate has filed for Chapter 11 bankruptcy in Florida following a $308.6 million legal judgment, seeking an asset sale.

Litigation Fallout Triggers Chapter 11 Filing

In one of the most notable commercial real estate restructuring actions of the quarter, an affiliate of Winter Park, Florida-based developer ZOM Living filed for Chapter 11 bankruptcy protection [1]. The reorganization petitions, submitted on October 30 in the U.S. Bankruptcy Court for the Middle District of Florida, follow the entry of a massive $308.6 million court judgment against the firm earlier this spring [1].

Led by CEO Greg West, ZOM Living is a prolific national developer and investor active across the multifamily and senior housing sectors [1]. Rather than navigating conventional distress driven solely by debt maturities or operating headwinds, the entity's Chapter 11 filing stems directly from the fallout of an Arizona-based property dispute [1]. Facing the enforcement of the multimillion-dollar judgment, the entity is now seeking to sell substantially all of its assets through the court-supervised process [1], while also moving to address and fund efforts surrounding the judgment [2].

Underlying Dispute with Gray Development

The financial pressure that prompted the bankruptcy filing originated from contentious litigation with Gray Development [1]. In that dispute, Gray Development alleged that ZOM improperly utilized proprietary information prior to acquiring development sites independently in Arizona [1]. That legal battle culminated in the $308.6 million court judgment that ultimately forced the affiliate into bankruptcy court [1].

Court filings reveal that the debtor entity now intends to orchestrate an orderly disposition of its portfolio holdings [1]. For major institutional developers operating across complex joint ventures—such as ZOM's previous high-profile partnerships, including its $119 million venture in Doral [1]—a legal judgment of this magnitude creates acute balance sheet strain that necessitates ring-fencing via federal bankruptcy protections [1].

RadCRE Perspective

The restructuring proceedings underscore the unique vulnerabilities that large-scale development platforms face when legal liabilities intersect with capital stacks and project-level assets.

"When an entity faces an adverse judgment exceeding $300 million, Chapter 11 becomes an essential mechanism to halt aggressive enforcement actions, preserve underlying enterprise value, and establish an organized process to monetize assets [1]. In situations like ZOM Living's filing, the bankruptcy forum shifts the battlefield from state court litigation to a structured asset sale process, allowing developers to stabilize operations while seeking to protect constituent equity and partnership value across their broader multifamily footprint [1], [2]."
— Majid Radaei, Founder & Principal Broker, RadCRE

Navigating Distressed CRE & Restructuring

As market conditions test commercial real estate balance sheets, bankruptcy courts continue to serve as the ultimate venue for debt restructurings, contested asset sales, and recapitalizations [1]. Structured asset dispositions under Chapter 11 require specialized underwriting to navigate court-ordered bid procedures, joint-venture partner consents, and creditor recoveries.

RadCRE advises institutional sponsors, lenders, and investors navigating distressed assets, recapitalizations, and special situation investment sales. Leveraging proprietary underwriting via RadCRE.ai and deep capital markets expertise, the firm assists clients in identifying value-add acquisition opportunities and executing complex transactions across multifamily and commercial asset classes.

Tags: commercial real estate bankruptcy, Chapter 11 restructuring, ZOM Living bankruptcy, distressed multifamily development, CRE asset sales