Today, the Albuquerque Journal reported that SunCal and DE Shaw are facing foreclosure proceedings on their 55,000 acre project on Albuquerque’s West Side, meaning they could lose the land to lenders, and proving false claims by Measure B proponents that DE Shaw’s $29 billion in assets under management back up SunCal at Alameda Point.
The Journal report includes the following:
A huge tract of land slated for residential and commercial development on Albuquerque’s West Side could be turned over to creditors because of foreclosure proceedings against California-based SunCal Cos.
Lenders filed a foreclosure lawsuit against SunCal Cos. in state court in New Mexico this week to collect more than $180 million in outstanding loans their developer used to finance the property purchase from Atrisco Land Grant heirs.
Barclays, Five Mile Capital and iStar Financial jointly loaned SunCal about $220 million for the project, which SunCal co-owns with New York firm D.E. Shaw.
The lawsuit asks that SunCal be compelled to pay $182 million, plus accrued interest and late fees, immediately. SunCal put up its project’s assets, including the land, as collateral, according to the lawsuit.
That means the lenders could seize the project from SunCal if it doesn’t come up with the money.
SunCal bought about 55,000 acres on Albuquerque’s West Side for $250 million in 2007. The company’s project was slated to include a master-planned community with acreage reserved for new industrial plants and retail, although the company has yet to lure a company into the project.
The loan recently matured but no deal has been struck to renew, modify or extend the note.
SunCal spokesman David Soyka said Friday that SunCal and D.E. Shaw had made all of its payments on time and have been trying to negotiate an extension.