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<a href="http://tinyurl.com/2lkkk4">Lansner reports on SunCal's troubles</a>:
<em>Troubles are mounting for the Irvine-based developer that lost a battle last fall with the Walt Disney Co. over a proposed residential project in Anaheim’s resort district, then lost the land planned for the development.</em>
<p><em><a href="http://www.suncal.com/"><strong>SunCal Companies.</strong></a> , a 70-year-old, family-run developer with projects throughout California, Arizona, Nevada and New Mexico, has been sued seven times in Orange County since October by companies claiming the firm or its affiliates defaulted on loans, court settlements or bills for construction and consulting work. The company also faces complaints and legal action over alleged work stoppages on pending projects.</em></p>
<p><em>In at least two cases, defaults have resulted in foreclosure action. A lender foreclosed on 1,300 acres in Sparks, Nev., where SunCal planned to develop homes and businesses. A Santa Ana apartment complex on North Bristol Street was repossessed Monday in another foreclosure sale, and a third sale on two Tustin apartment buildings is scheduled for Thursday.</em></p>
<p><em>Elsewhere in California, work has slowed on SunCal’s McAllister Ranch project in Bakersfield, and the company has been beset by claims from contractors and suppliers alleging they are owed $2.2 million in unpaid bills.</em></p>
<p><em>SunCal blamed financial troubles on the tight housing market. David Soyka, senior vice president of public affairs, issued the following statement:</em></p>
<p><em> “Like every other homebuilding and land development company, we are facing market challenges.The entire industry is affected, and we’re working with our lenders and Wall Street financial partners, both public and privately held companies, to decide how to adjust our business plans.”</em></p>
<p>Yeah, the property in Santa Ana, went back to the bank for $49.5mil, and the NTS amount was $80.8mil. Geez.... I guess they couldn't impair that land enough.</p>
And... just back in October, <a href="http://lansner.freedomblogging.com/2007/10/04/suncal-launches-its-own-homebuilding-unit/">they made the decision to get into the home building part of the business</a>. Bad timing... I guess?
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“We have long been a master developer, selling residential lots that have been entitled and graded to homebuilder partners, and they build the homes,” Aguirre said. “The company believes it’s an excellent time to start a homebuilder.”</em>
<p><em>Aguirre said SunCal will continue to sell home sites to builders like Lennar, Standard Pacific and others. But Mosaic Homes residences likely will rise in subdivisions alongside the those of other builders. SunCal has yet to decide when to start construction on its own homes.</em></p>
<p><em>Aguirre noted that as a private company, SunCal will have advantages that publicly traded homebuilders don’t have. As builder profits turned into multi-million-dollar losses, public companies have cut back on construction, cut costs, laid off staff and abandoned land-purchases, forfeiting millions in deposits.</em></p>
<em>“We’re less impacted by short-term market cycles,” he said, noting that private companies are more free to focus on long-term plans.</em>
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<em>Troubles are mounting for the Irvine-based developer that lost a battle last fall with the Walt Disney Co. over a proposed residential project in Anaheim’s resort district, then lost the land planned for the development.</em>
<p><em><a href="http://www.suncal.com/"><strong>SunCal Companies.</strong></a> , a 70-year-old, family-run developer with projects throughout California, Arizona, Nevada and New Mexico, has been sued seven times in Orange County since October by companies claiming the firm or its affiliates defaulted on loans, court settlements or bills for construction and consulting work. The company also faces complaints and legal action over alleged work stoppages on pending projects.</em></p>
<p><em>In at least two cases, defaults have resulted in foreclosure action. A lender foreclosed on 1,300 acres in Sparks, Nev., where SunCal planned to develop homes and businesses. A Santa Ana apartment complex on North Bristol Street was repossessed Monday in another foreclosure sale, and a third sale on two Tustin apartment buildings is scheduled for Thursday.</em></p>
<p><em>Elsewhere in California, work has slowed on SunCal’s McAllister Ranch project in Bakersfield, and the company has been beset by claims from contractors and suppliers alleging they are owed $2.2 million in unpaid bills.</em></p>
<p><em>SunCal blamed financial troubles on the tight housing market. David Soyka, senior vice president of public affairs, issued the following statement:</em></p>
<p><em> “Like every other homebuilding and land development company, we are facing market challenges.The entire industry is affected, and we’re working with our lenders and Wall Street financial partners, both public and privately held companies, to decide how to adjust our business plans.”</em></p>
<p>Yeah, the property in Santa Ana, went back to the bank for $49.5mil, and the NTS amount was $80.8mil. Geez.... I guess they couldn't impair that land enough.</p>
And... just back in October, <a href="http://lansner.freedomblogging.com/2007/10/04/suncal-launches-its-own-homebuilding-unit/">they made the decision to get into the home building part of the business</a>. Bad timing... I guess?
<em>
“We have long been a master developer, selling residential lots that have been entitled and graded to homebuilder partners, and they build the homes,” Aguirre said. “The company believes it’s an excellent time to start a homebuilder.”</em>
<p><em>Aguirre said SunCal will continue to sell home sites to builders like Lennar, Standard Pacific and others. But Mosaic Homes residences likely will rise in subdivisions alongside the those of other builders. SunCal has yet to decide when to start construction on its own homes.</em></p>
<p><em>Aguirre noted that as a private company, SunCal will have advantages that publicly traded homebuilders don’t have. As builder profits turned into multi-million-dollar losses, public companies have cut back on construction, cut costs, laid off staff and abandoned land-purchases, forfeiting millions in deposits.</em></p>
<em>“We’re less impacted by short-term market cycles,” he said, noting that private companies are more free to focus on long-term plans.</em>
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