Tustin: Foreclosures Go Large Scale
Remember a few years ago when every street you drove down had dancing guys with signs pointing you to the nearest condo conversion site? It seemed like apartment complex after apartment complex was being renovated, sliced up, and sold off. Or, the entire apartment building was completely demolished and a brand-new, bigger condo complex was erected. No doubt… a lot of developers got very rich off this scheme. But, what about those that were a little late to party?
According to the OC Register’s article “Tustin apartment complex is in limbo“, Irvine-based SunCal Companies (jointly with Southwind Realty Group) is close to losing their planned development site in Tustin (corner of Browning and Mitchell) to the bank. The apartment complex (currently occupied by tenants) is slated to be auctioned off by the bank on March 6. SunCal has been delinquent in payments making the loan in default.
SunCal’s plan was to replace the current apartment complex with a 77-unit, three-story condominium complex called “Hampton Village”. SunCal, perhaps in a delusional state, says, “We remain committed to the planned Hampton Village condominiums and to seeing that the project progresses and is completed as approved by the city of Tustin.”
As for the current residents? They’re in limbo. If the property is auctioned off, they may get the boot. One resident tells the Register, “I can stand heaven or hell, I can’t stand not knowing.”
This isn’t the first plan of SunCal’s that has gone up in flames. Just a couple months ago, there was the disaster between Disney, SunCal, and Anaheim residents about the development of residential units near the park. Per MickeyNews (yes, such a site exists):
“Irvine-based SunCal Cos. had envisioned a 1,500-unit condominium and low-cost apartment complex. . . But the project sparked a rancorous debate over the future of Anaheim’s Resort District, capturing national attention and triggering protests, lawsuits and ballot propositions. . .
The property became available three months ago when SunCal’s $46-million deal to buy the land from the Frank Family Partnership collapsed. A month after the deal fell through, SunCal sued the Frank Family for $60 million in damages, alleging that the landowner and a third party had conspired to scuttle the deal.”
Sounds like SunCal has got some serious problems. When you take the behavior we’ve seen with individual homeowners and the sub-prime lending issues and magnify it to this scale, you’ve got one giant problem… it’s time to see foreclosures get super-sized!
