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E-mail StoryBig foreclosures close quietly
| Wednesday, Mar 5 2008 5:53 PM
Last Updated: Wednesday, Mar 5 2008 5:53 PM
A $74 million loan to Irvine-based developer SunCal Cos. for a major housing project in Shafter was foreclosed on Wednesday morning at a public auction on City Hall steps.
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SunCal’s outstanding debt to national homebuilder Lennar Corp. had reached almost $86 million with interest and fees by auction time. Opening bids for the 515-acre site started at $10 million. No one made an offer, so the property went back to Lennar.
SunCal, through subsidiary SunCal Mission Lakes LLC, bought the land from Lennar in early 2006, borrowing the funds at that time.
The acreage was about a third of the proposed 5,300-home Mission Lakes development north of 7th Standard Road, west of the Calloway Canal.
Two other would-be residential development sites were also foreclosed on at Wednesday’s auction.
A pair of Wasco properties borrowed against by Eagle Meadows of Wasco companies operated by Stockton-based developer Kent Hoggan went back to lender Investment Grade Loans Inc. after no one answered the opening bid call at $100,000 apiece.
About 77 acres at Gromer and Magnolia avenues and 75 acres near Palm and Filburn avenues carried about $4.2 million in debt. Both are currently agricultural sites.