SunCal buys home lots after Kimball Hill liquidation

Thursday, Nov. 5, 2009 | 10:14 a.m.

Land acquisitions of home lots by builders, developers and investment groups continue to pick up.

SunCal Companies has purchased the lots formerly owned by Kimball Hill Homes as part of its liquidation. Developer SunCal Companies acquired 639 finished lots and 433 partially-finished lots in 11 communities throughout Las Vegas and Henderson.

The total value of the transaction was $20.07 million, says Michael Stuart, senior vice president of the land division of Colliers International. It was an all-cash deal financed through D.E. Shaw Group, he says.

Kimball Hill Homes filed for Chapter 11 bankruptcy protection in 2008.

Comments
Print
E-mail
Share
- Facebook
- Fark
- Digg
- Reddit
- Stumble
Tweet

Discussion: comments so far…

Comments are moderated by Las Vegas Sun editors. Our goal is not to limit the discussion, but rather to elevate it. Comments should be relevant and contain no abusive language. Comments that are off-topic, vulgar, profane or include personal attacks will be removed. Full comments policy. Additionally, we now display comments from trusted commenters by default. Those wishing to become a trusted commenter need to verify their identity or sign in with Facebook Connect to tie their Facebook account to their Las Vegas Sun account. For more on this change, read our story about how it works and why we did it.

Only trusted comments are displayed on this page. Untrusted comments have expired from this story.

No trusted comments have been posted.

By revtomperl (Thomas Perl)

Nov. 5, 2009

12:06 p.m.

Flag

Get serious - there should be no building until vacant properties are under 5% - there is plenty of supply.
By CynicalObserver

Nov. 5, 2009

12:09 p.m.

Flag

In the Summer of 2009, through an oddly named subsidiary, SunCal bought the entire 300+/- lot inventory in Henderson and northern Las Vegas owned by the bankrupt Southwest Communities Development LLC, a subsidiary of bankrupt LandSource Communities Development LLC. LandSource was majority owned by MW Housing Partners III, an investment vehicle of the California Public Employeers Retirement Fund (CALPERS), which lost $1 Billion investing in LandSource. LandSource bought its interest in SunCal from Lennar.

Lennar's name appeared on all of the advertising signs for the bankrupt housing tracts owned by bankrupt Southwest Communities Development, LLC and ultimately sold to SunCal.

So, as of the press release above, we've got SunCal buying 1300+ housing tract lots in Las Vegas, in some sort of joint venture with NY hedge fund D.E. Shaw.

At the same time, in California, there are 30 SunCal affiliates in Chapter 11 bankruptcies arising out of their failed joint ventures with Lehman Brothers. Those bankruptcies were preceded by foreclosures on SunCal lot inventories in San Juan Capistrano and the Bakersfield area. Lennar was the foreclosing lender on the Bakersfield area lots.

SunCal's operations are certainly an interesting game of musical chairs.