Irvine builder California Coastal Communities, best known as developer of the seaside Bolsa Chica project, says that some of its subsidiaries are currently in default on loans secured by Inland Empire property and those subsidiaries “are attempting to negotiate a consensual resolution of the loans which is likely to involve turnover of the properties securing these loans to the lender.” Projects in trouble are Hearthside Lane in Corona and Las Colinas in Lancaster.

As for the Bolsa Chica project called “Brightwater,” the company says in its press release:

The Company completed amendments to its $210.0 million aggregate principal amount revolving and term loans during the quarter, which will preserve an additional $100.0 million of borrowing capacity until September 2009. The amendments enable the Company to finance construction at Brightwater and repay the loans on a schedule that better reflects the Company’s current expectations about home sales at Brightwater given the continuing downturn in the housing market.

Raymond J. Pacini, CEO of the Company commented: “While conditions in the housing and credit markets have continued to deteriorate during the quarter, we are pleased to have successfully negotiated amendments to our revolving credit line and term loan, and we appreciate the continued support and cooperation of our lenders. We continue to experience reluctance among prospective home buyers due, in large part, to the significant economic uncertainty that exists today. Despite the challenges of the current national homebuilding market, the national credit market crisis and the continued erosion of our inland markets, we believe the potential for our Brightwater project remains strong.”

Third quarter homebuilding revenues of $13.9 million reflect an $8.7 million increase compared with the third quarter of 2007. This increase is primarily due to seven deliveries at Brightwater compared with no Brightwater deliveries in the comparable period of 2007. The average sales price of homes delivered in the third quarter of 2008 increased to $817,600 from $433,300 in 2007, primarily reflecting the first five deliveries of the larger homes (The Cliffs and The Breakers) at Brightwater, in addition to two deliveries of the smaller homes (The Trails and The Sands), compared with deliveries only at inland communities in 2007.

Overall, the Company lost $24.9 million in the first nine months of 2008.

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Posted in: Brokers, builders, etc. • Meltdown • Top tale • Bolsa Chica • Brightwater • real estate |

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