According to the Foreclosure Support website, a 9,000 home project backed by DE Shaw in Florida has fallen victim to foreclosure proceedings. DE Shaw is SunCal’s sole-source financial partner for their Alameda Point project.
According to the article, DE Shaw backed the Metro Development Group’s acquisition of thousands of parcels of land in the Tampa Bay area from struggling homebuilder Lennar and developer M/I Homes. Now, 9,000 of those sites are in foreclosures procedures and court-appointed receivership. Evidently Metro Homes acquired the land at the peak of the market.
Hedge fund DE Shaw backed the acquisition deals with $250 million. DE Shaw has also been working to get into SunCal’s bankrupt California projects.
According to Foreclosure Support, Metro Development owes $155 million to various lenders.
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