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SunCal Albuquerque Project not Affected by Lehman Brothers Failure

Undeveloped NM Landx The wave pf collapse of some of our most trusted financial institutions is having a ripple effect that is leaving a wake of speculation and doubt about financial partners and planned developmen projects. Independent entrepreneurs, developers and even states are concerned about taint from the turmoil raging around Freddie Mac, Fannie May, Lehman Brothers, Merril Lynch and AIG. Remaining institutions are suspect as some nervously ask, Who is is next?

It is for thaos ereasons the SunCal Developers who acquired the former Views of SunCal Westside properties Westland Corporation's holdings find themselves having to give reassurance about their Albuquerque project. Apparently, Lehman Brothers were financial partnered with SunCal on earlier projects in California, but were not on the Albuquerque, NM ticket. A SunCal spokesperson said the Albuquerque project has $100 million in equity and its capital partner here in Albuquerque, is E.Shaw, a $35 billion investment firm. SunCal and Shaw remain fully committed to the Albuquerque project. NM According to the New Mexico Business Weekly, SunCal put in the above disclaimer.

Undoubtedly, New Mexico is relieved to hear the disclaimer and learn that SunCal' s plans for a master-planned community of the 57,000 acres west of Albuquerque is not in jeopardy. We are all aware that the greatest challenge for buyers and investors in the current real estate market is that of securoing financing, and the city of Albuquerque and SunCal have been working on this project for sometime.

Eloise Gift
www.EloiseGift.com

Eloise Gift, CRS
Gift Realty NM
Your Gift For Real Estate - Your Gift For All Seasons
www.eloisegift.com
505-363-5156

Posted by Eloise Gift, New Mexico Real Estate on 09/19/2008 12:45 AM

Comments (7)

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suncal developers, albuquerque expansion, development, new mexico land development, westland corporation

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7 Comments on SunCal Albuquerque Project not Affected by Lehman Brothers Failure

SEP

2008

Hi Eloise, this is a great post to help people understand some of the issues. The "ripple" effect is going to be far reaching but most lenders and developers that were solvent in the past are going to remain so in the future. Nice post and photos Eloise.

Eloise, it is nice to know that the Lehman Brothers collapse did not take everything that they were involved with down with them.

I would not believe one thing that Suncal says. They hire people to tell you what you want to hear and their past history over the last 12 months shows that they are having major problems trying figure out how to spend what little money they actually have. Their problem is that they got caught trying to do too many projects at once and I suggest that you take the time to Google Suncal and see their history of what they tried to to do in Barstow, Bakersfield, Alamda Point, Mable Head and Anaheim. Don't turn your back or you may find your wallet is gone (tax dollars).

Eloise - It is good to know this project is not in jeopardy, I had too deal unraveled because of the mess.

Have a great weekend.

Eloise, your post is incredibly naive. I wonder if your interests as a NM real estate broker have caused you to put an unrealistically postive spin on the future of Suncal's Albuquerque project. Lehman's collapse is bringing down all of Suncal. True the Albuquerque deal is financed by DE Shaw, but remember that it is Suncal who is the developer, and Suncal is in a death spiral right now. Also please note that DE Shaw is deeply connected to Lehman. Please do google Suncal's activities in northern and southern California to see what is happening to them. Reckless cheerleading of this project will ultimately end up wasting the precious taxpayer funds of NM.

SEP

2008

Gary- I want to believe that your prediction is correct. I fear the far-eaching effects of the reach of the fallen giants.

George- I hope that we have seen the end of the the misfortunes.

Stan-Thank you for your input. I am trying to focus for the time being on Albuquerque knowing the past performance does not necessarily determine that of the future.

My response to writing a naive post: For all we know, the remaining NY institutions are all teetering on the brink of collapse. Today, some are doubting that the FDIC has the wherewithal to shore up all the known failures. I will give them all the benefit of the doubt hoping against the odds maybe that somehow they and all of us will pull through. In otherwords, I am trying to see th glass as half full instead of half empty. Naive position? not really. Optimistic? yes.

Jennifer-The reality is that deals started unraveling since June because of the fragility of lenders. Several buyers who were approved saw the approval disappear with ovenight changes in lending practices and rules that have been changing on a daily basis. My hope is that we get no more surprises of big institutions going under. When they do, what shores up the smaller institutions and and the investments of individuals?

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