## Facts

- Oceanside Mission Associates, a limited partnership, filed a Chapter 11 petition.
- The debtor owned a single parcel of undeveloped real property that generated no income and had no operating business on it.
- The property was encumbered by secured claims exceeding $4,000,000 and may have been worth less than $4,000,000.
- The senior secured creditor moved for relief from the automatic stay under 11 U.S.C. § 362(d)(3), asserting the case involved “single asset real estate” (SARE).
- It was undisputed the debtor neither filed a plan nor began required interest payments within 90 days of the petition date.
- The stay-relief request turned on whether the property met the definition of SARE in 11 U.S.C. § 101(51B).

## Issues

1. Whether the debtor’s undeveloped, non-income-producing real property qualified as “single asset real estate” under 11 U.S.C. § 101(51B), triggering mandatory stay relief under 11 U.S.C. § 362(d)(3).

## Decision

- The court held the property was not “single asset real estate” under § 101(51B).
- The court denied relief from the automatic stay under § 362(d)(3) because that provision applies only in SARE cases.

## Legal Principles

- To qualify as “single asset real estate” under § 101(51B), the subject real property must “generate[] substantially all of the gross income of a debtor”; undeveloped property generating no income does not satisfy this condition.
- Section 101(51B) includes a secured-debt ceiling: aggregate noncontingent, liquidated secured debts must be no more than $4,000,000; secured debt exceeding that amount excludes the property from SARE treatment.
- If a case is not a SARE case under § 101(51B), § 362(d)(3)’s mandatory stay-relief mechanism is unavailable, even if the debtor’s principal asset is a single parcel of real property.

## Conclusion

Because the debtor’s undeveloped land generated no gross income and the secured debt exceeded $4,000,000, the property fell outside § 101(51B)’s SARE definition, so § 362(d)(3) did not require stay relief and the motion was denied.


In re Oceanside Mission Assocs., 192 B.R. 232 (Bankr. S.D. Cal. 1996)