Thursday, Nov. 13, 2008 | 1:52 p.m.
Wachovia Bank has foreclosed upon a 1,710-acre development in Las Vegas before a single home was built, the chief executive of Focus Property Group said today.
In October, Wachovia, which has been taken over by Wells Fargo, filed a lawsuit naming Focus and eight builder partners for defaulting on payments for the northwest Las Vegas development.
In his first public statement on the latest development over Kyle Canyon, Focus’ John Ritter told members of the housing conference at the Four Seasons that the lender has taken back the property.
In 2005, Focus and the builders paid $510 million to buy the property at a Bureau of Land Management auction. It had city approval to build up to 16,000 homes.
Focus owned 23 percent of Kyle Canyon. The other partners were Toll Brothers, Lennar, Pulte, KB Home, Kimball Hill Homes, Wooside Homes, Meritage Homes and Ryland Homes.
In it’s lawsuit in U.S. District Court in New York, media accounts said Wachovia is seeking payments to exceed $358 million.
Inspirada, a Henderson master planned community of Focus and homebuilders, remains in default with lender J.P. Morgan and Chase & Co. Negotiations are ongoing to resolve those outstanding loans and no foreclosure proceedings have started.
Focus has paid off its portion of the debt, said Ritter who added he hopes a deal is done.
The conference sponsored by the Sullivan Group Real Estate Advisors painted a gloomy picture of the Las Vegas housing industry.
(For more information, read the Nov. 21 issue of In Business Las Vegas.)
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