Update: Michael Jackson’s Neverland Ranch Averts Foreclosure

Pop/R&B icon Michael Jackson’s Neverland Ranch has avoided a foreclosure set for this week after a loan on the huge California property was sold to Colony Capital, a large real estate investment firm, the singer said Sunday. The loan, which sources familiar with the matter said was about $23.5 million, had been held by Fortress Investment Group, a New York-based private equity and hedge fund group. The 2,700-acre ranch in Santa Barbara County was slated to be auctioned off on May 14 after Jackson defaulted on loan payments. In a press release, Jackson said he was in discussions with Colony and its founder, Tom Barrack Jr., “with regard to the ranch and other matters.” Colony, a Los Angeles-based firm that has invested more than $39 billion since its founding in 1991, is “very comfortable” holding the loan while it negotiates payment terms, a person familiar with the situation said.

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