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E-mail Story$100 million loan on Rosamond project defaults
| Wednesday, May 7 2008 6:30 PM
Last Updated: Thursday, May 8 2008 7:54 AM
A $100 million loan that defaulted was among seven delinquencies recorded Tuesday against developers with projects in Kern, documents at the Kern County Recorder’s office show.
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The largest involved a residential project in Rosamond by Stockton developer Patrick H. Matthews.
Defaults and foreclosures among developers have become more common since the real estate market got rough, but Tuesday’s filings stand out because of their quantity and because the Rosamond project has apparently chocked up the second-highest local delinquency in the current downturn.
The highest so far is a $235 million default from Irvine-based SunCal Cos. recorded in late April for the McAllister Ranch project in southwest Bakersfield.
The Rosamond default was filed against Rosamond Reflections LP, a subsidiary of Matthews’ company C.H. Builders Inc.
The money was borrowed against a 40-acre, 176-lot project at the southwest corner of Orange Avenue and 30th Street West.
Lender Bank of America in July 2007 upped to $100 million a revolving loan agreement originally made in 2005.
As of April 29, Rosamond Reflections owed a past due amount of more than $71 million, Tuesday’s notice indicated. Eagle Meadows
Also Tuesday, six default notices totaling about $35 million were recorded against limited liability companies of another Stockton developer, Kent Hoggan.
Four entities — Eagle Meadows of Bakersfield 353 LLC, Eagle Meadows of Bakersfield 240 LLC, Eagle Meadows of Bakersfield 155 LLC and Eagle Meadows of Bakersfield 111 LLC — received the notices.
Three were for the Bakersfield 353 project, which includes property near the southwest corner of Cottonwood and Pacheco roads.
Those loans, made by a group of private lenders, totaled more than $23 million.
In March, two of Hoggan’s projects in Wasco had loans foreclosed on.
Eagle Meadows of Wasco 75 LLC and Eagle Meadows of Wasco 77 LLC, which together carried more than $4 million in debt borrowed against agricultural acreage, went back to lender Investment Grade Loans Inc.