Big Pahrump development sold

Monday, Jan. 8, 2001 | 11:26 a.m.

An Alpharetta, Ga.-based brokerage said it will act as a mortgage loan provider for homeowners of Las Vegas developer E.A. Collins Development's troubled 8,300-home Mountain Falls Resort Community in Pahrump, which is being sold.

Lahaina Acquisitions Inc. said it will have an on-site mortgage office at Mountain Falls once Summit Group Inc. completes its acquisition of the development from Collins. Lahaina said its subsidiary, United Capital Mortgage Corp., will act as a "preferred provider" of mortgages for the Mountain Falls development.

Ted Holder, Summit's chairman; said Charles Dixon, Collins' president, will serve as Summit's president and will oversee the development of the 3,000-acre Mountain Falls project.

"The acquisition and development of the project will be funded with (notes) issued by Summit. Merrill Lynch has committed to provide the commercial financing and First Union Bank has also expressed interest in the various fundings," Holder said. Separately, Lahaina said it will acquire a $16 million property adjoining the Mountain Falls project. Lahaina refused to disclose what the property is.

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