2 commercial real estate bankruptcies to bring loan losses

By Steve Green

Monday, Dec. 6, 2010 | 10:31 a.m.

Local and national banks face more loan losses after two more sizable commercial real estate bankruptcies in Las Vegas.

Henderson-based Whitton Corp., which previously did business under several South Tech corporate names, filed for Chapter 11 reorganization on Sunday after several of its properties in the Las Vegas area and Northern Nevada were placed into receivership.

The initial bankruptcy filing didn't include detailed financial information, but assets and liabilities were each listed in the range of $10 million to $50 million.

South Tech properties listed in the bankruptcy filing include developments at 3950 E. Sunset Road in Las Vegas, parts of the South Tech Cheyenne business park at 2475 W. Cheyenne Ave. in North Las Vegas, 2750 W. Brooks Ave. in North Las Vegas, 5480 S. Valley View Blvd. in Las Vegas, 1000 Stephanie St. in Henderson, 7625 Dean Martin Drive in Las Vegas, 835 and 855 Seven Hills Drive in Henderson, 5720 and 5770 Russell Road in Las Vegas and projects in the Northern Nevada city of Sparks.

The Seven Hills Drive locations at Horizon Ridge Parkway, encumbered by $8 million in debt, include the Commons at Seven Hills center that includes small retailers.

The Sunset Road property, west of Green Valley Parkway and encumbered by $3.6 million in debt, is called Sunset Annie Oakley Centre and includes a strip mall with standalone retailers.

Creditors in the Whitton filing include Bank of America, Bank of Las Vegas; German American Capital Corp., which is part of Deutsche Bank; U.S. Bank and a company called LSREF2 Nova Investments LLC.

The filing says the company formerly did business under names including South Tech Construction Corp., South Tech Partners LLC, Desert Pacific Properties LLC, TEH Investments LLC, South Tech Real Estate Services LLC and South Tech Development LLC.

Limited liability entities it did business as, the filing said, also included South Tech Polaris, South Tech Annie Oakley, South Tech Seven Hills, South Tech Diablo, South Tech Rio, South Tech Dean Martin 7625, South Tech Stephanie 1000, South Tech Cheyenne 2475, South Tech Cheyenne West 2455A, South Tech Brooks 2750, South Tech Kleppe, South Tech Greg, South Tech Glendale 155 and South Tech Russell.

A message for comment was left with the company about the bankruptcy.

Separately, the owner of a retail center in western Las Vegas filed for Chapter 11 as well last week.

Sunshine Holding Company LLC of Tahoe City, Calif.; doing business as Tucson Plaza, said in its filing its principal asset is the shopping center at 9436-9484 W. Lake Mead Blvd., west of Del Webb Blvd.

That filing listed assets and liabilities of $1 million to $10 million apiece.

Creditors in that case include Bank of Las Vegas with a claim of $4.7 million, the filing said.