Orange County Register

The Irvine-based owner of the bankrupt Marblehead development and 21 other projects in Chapter 11 has managed to buy bargain property from another bankrupt developer.

SunCal Cos. paid nearly $20.1 million to buy just under 1,100 lots in 11 developments in Las Vegas and Henderson, Nev. The land was formerly owned by Illinois-based Kimball Hill Homes, which filed for Chapter 11 in 2008. Highlights of the deal include:

• SunCal purchased 639 finished lots.
• SunCal purchased 433 partially finished lots.
• The purchase was an all-cash deal financed through D.E. Shaw Group.
• D.E. Shaw is acting as both a lender and partner in the deal, a SunCal spokesman said.
• The transaction closed escrow on Oct. 21, with SunCal acting through a subsidiary called Vegas Valley KHI Acquisition.

Marblehead and the several other SunCal projects ended up in Chapter 11 following the collapse of financial backer and lender Lehman Brothers in September 2008. Others filed for bankruptcy because of the housing slump.

All 22 developments in bankruptcy are independent entities, and SunCal is not in bankruptcy itself. In fact, the company is actively looking for new land-buying opportunities while the bargains last, said company spokesman David Soyka. “We’re always pursuing good opportunities nationwide,” he said. “We’re looking at raw land and finished lots. We’re adding to our portfolio.”

• Big O.C. loan defaults: HERE!
• Bankrupt SunCal developments: HERE!

More on SunCal …

• Who controls big San Clemente ocean-view project?
• Bankruptcy sought for ocean-view homes in San Clemente
• SunCal hopes Marblehead bankruptcy will help financing
• Judge wonders if O.C.-run home projects are ‘DOA’
• O.C. developer $300 million in the hole
• San Clemente says it’ll fight to get Lehman-backed seaside project finsihed
• Wall St. backer of O.C. seaview project bankrupt

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