Friday, August 15, 2008

City in the Hills defaults and others.

This is getting ugly...I might need to move out of town...maybe we will have a grapes of wrath II, except this time we go back to Oklahoma...

From the Bakersfield Californian:

A trio of large developments in northeast Bakersfield have defaulted — two of them from the master developer of the City in the Hills project, county records show, continuing to a string of such troubles in Kern. More than $26 million was past due on the three loans.

Here are details:

Three loans made by Indymac Bank to subsidiaries of City in the Hills’ master developer defaulted Thursday.

• A $19.8 million construction loan to S & J Alfalfa Inc. for about a square mile at the southeast corner of Highway 178 and Morning Drive. More than $9.7 million was owed as of July 29, the default notice said. The loan was made in December 2006.

• A $9.8 million loan to SKY 21 LLC for about 3/4 of a square mile on the east side of Masterson Street, at the southeast corner of its intersection with 178. More than $7.4 million was in arrears as of July 29 on the loan made in October 2006.

• A $17.9 million construction loan to Sycamore Villas Development LLC. More than $1.9 million was owed as of July 29. The loan was made in January 2007. All loans were signed by then-president Dennis A. Harris, records show. Indymac, based in Pasadena, was seized by federal regulators in July. Last month, another related company, MVB Ventures LLC, defaulted on a tract in City in the Hills known as Juliana’s Garden. Los Angeles-based Mountain View Bravo LLC is the master developer of nearby City in the Hills, on the north side of 178.

• Another northeast parcel defaulted Wednesday. Monte Carlo LLC defaulted on a $15.4 million construction loan from County Bank in Merced. Developer Terry L. Moreland owed more than $9.1 million as of Aug. 12 for the December 2006 loan against 105 acres near the northeast intersection of 178 and Alfred Harrell Highway
Federal regulators last month entered into a written agreement with County Bank requiring better lending oversight and disclosure of problem loans.

• In southwest Bakersfield, the Destefani family defaulted last week on a $3.6 million loan from Bakersfield-based A-C Electric Co. on about 143 acres at the northeast corner of Taft Highway and Old River Road. The area has plans for residential and commercial development, though the lot is currently agricultural land. More than $2 million was owed as of July 31, the default notice showed.


I assume the Nascar race track is dead now that the Destefani family is defaulting on their debts and begging for investors?

13 comments:

TheFunSucker said...

what burns me is the fact that most of these high rollin developers and RE investors will walk away and will personally lose little or nothing. I've seen a couple forclosures where these 'investors' are selling/transfering the homes to their business prior to foreclosure...I'm sure it's legal but it's certainly not ethical. and all these other dopes have created cutely named LLCs that cost them little risk but potentially huge profits. If I'm wrong please correct me as I would like to see these fools suffer at least a bit!

Rob Dawg said...

I was going to post but I find my ego no longer fits in the comments window. ;-)

How long have I been bustin' on CitH?

Mark said...

I am on the wrong site, I was looking for "Hills have Eyes"

Anonymous said...

I don't even have words for messed up this is getting.
Rumor on the street is that one of the biggest problems with the "new" Mesa Marin site was a lack of access to water via utility or well.
I would point out that CitH is about the same size as silver creek and "Liberty" is selling now. Which makes Silver Creek a 20 year project.(1987-2008) If memory serves McAllister is 3x the size of CitH.

Rob Dawg said...

Ahhhh but McCallister has the best desert golf in the Central Valley.

xs10shell said...

I saw on the tv news that Hovnanian is shutting down building for now at Rosemarys Arbor and Lantanas Edge. But then I see in today's Californian that the developer on the Bluffs is still trying to get approval for over 1300 houses.

Realestateslasher said...

Rob is your dog name Cheese Burger

Rob Dawg said...

Not named cheezeburger he just wantz cheezeburger. He canz haz cheezeburger now? He's my alter ego, the thinner I get the fatter he gets.

Lone Ranger said...

"Developer Terry L. Moreland owed more than $9.1 million as of Aug. 12 for the December 2006 loan against 105 acres near the northeast intersection of 178 and Alfred Harrell Highway
Federal regulators last month entered into a written agreement with County Bank requiring better lending oversight and disclosure of problem loans."

Moreland?!?! Don't ANY of these banks check into the past business history of potential borrowers?

xs10shell said...

Maybe they can get together and turn that golf course into a race track. Who owns A-C Electric, that sold to Destafani anyway?

Bakersfield Bubble said...

SHit!

I missed the deafault was Moreland related.

I also curious why AC electric was getting involved in land speculation/loans...

Anonymous said...

Still wondering - who are AC Electric principals?

Anonymous said...

Okay - I found this, but how do i find the names of individuals?

Contact Us

CORPORATE HEADQUARTERS
Box 81977
2921 Hangar Way (93308)
Bakersfield, CA 93380-1977
(P) 661/410-0000
(F) 661/392-9162

PRECONSTRUCTION SERVICES
Box 81977
2921 Hangar Way (93308)
Bakersfield, CA 93380-1977
(P) 661/410-0000
(F) 661/392-9162

BAKERSFIELD CONSTRUCTION DIVISION
Box 1834
315 30th Street (93301)
Bakersfield, CA 93303
(P) 661/633-5368
(F) 661/324-2761

FRESNO CONSTRUCTION DIVISION
Box 6060
1835 E. Lamona Avenue (93703)
Fresno, CA 93703
(P) 559/233-2208
(F) 559/233-6849

VISALIA CONSTRUCTION DIVISION
Box 328
1035 W. Murray Avenue (93291)
Visalia, CA 93279
(P) 559/732-4733
(F) 559/732-0954

AUTOMATED CONTROL & TECHNICAL SERVICES - BAKERSFIELD
Box 2919
315 30th Street (93301)
Bakersfield, CA 93303
(P) 661/399-2200
(F) 661/399-2299

AUTOMATED CONTROL & TECHNICAL SERVICES - FRESNO
Box 6386
4545 N. Brawley, Suite 105 (93722)
Fresno, CA 93703
(P) 559/277-3488
(F) 559/277-3493