The San Francisco Business Times put out an article on Nov. 23 about the 310-acre Delta Coves project in Bethel Island, a community of about 2,500 people in east Contra Costa County. The site was entitled for 494 single-family homes with a marina. According to the article, Master developer SunCal Cos. is considering whether to move forward. Irvine-based SunCal stalled work on the project in 2008 after its financial partner, Lehman Brothers, collapsed. The developer bought the property last summer from Lehman as part of a settlement from a lawsuit SunCal filed against Lehman involving various development sites.
The Wall Street Journal had an article in June about the recent purchase.
After years of fighting, Lehman Brothers Holdings Inc. has sold two large California housing developments for $60 million to one of its main real-estate partners during the boom years.
The deal is the latest sign that Lehman, little by little, is extricating itself from the soured real-estate deals that helped bring the bank to its knees, resulting in the largest bankruptcy filing in U.S. history in October 2008.
Lehman’s sale of the Fairway Canyon and the Delta Coves master-planned projects to SunCal Cos. also comes as major land developers are moving ahead with housing projects again. SunCal plans to finish out the projects along the lines of their original plans, using funds from private-equity firms Colony Capital LLC and Dune Capital Management LP, according to Stephan Elieff, SunCal’s president.
Colony’s involvement in the deal also is significant. Colony is one of a handful of private-equity funds that has stepped up its investment in the single-family housing sector in the past year by investing in both land and foreclosed homes to rehab and rent out. Investors are attracted to such housing by the low prices and the potential for high yields as the assets appreciate.
“Since the time SunCal negotiated the price for these assets last fall, the relevant markets have certainly improved, which is good for us,” said Paul Fuhrman, a principal with Los Angeles-based Colony.
In the decades leading up to its collapse, Lehman had lent more than $3 billion to SunCal, one of the largest land developers in the western U.S. At the time of Lehman’s failure, SunCal was the bank’s second-largest real-estate investment, valued at $1.6 billion, according to internal documents released last year.
After Lehman failed, SunCal took 21 of the Lehman-funded projects into bankruptcy. Since then, the developer and the bank have been fighting over how to unwind the projects, with both sides maneuvering to retain control.
After three years of litigation, the bank managed to wrest control of the assets from SunCal, agreeing to sell the developer two of them and release SunCal’s chief executive, Bruce Elieff, along with his wife, from hundreds of millions of dollars in personal guarantees.
In October, SunCal successfully bid on three other projects from the portfolio, buying them at auction for $71 million.
Before Lehman’s collapse, the bank had lent approximately $324 million to SunCal for the Fairway Canyon and Delta Coves communities, which was used to buy land, build infrastructure and prepare home sites for building.
Fairway Canyon, in the hills of California’s foreclosure-plagued Inland Empire, is a golf community with 3,300 homes planned on 985 acres, with parks, recreation facilities and 30 acres of commercial space, including a supermarket and a multiplex movie theater. There are about 1,100 occupied homes there.
Delta Coves, on Bethel Island, is 310 acres alongside the Sacramento River that is planned for 590 waterfront homes, a yacht club and private docks. No homes have been built there yet.
In the past year, SunCal has begun buying land again, although with more-modest ambitions than during the real-estate boom. Mr. Elieff said that SunCal may try to purchase some of the 14 remaining projects from the old SunCal portfolio that remains under Lehman’s control.
“We agreed to support their [bankruptcy] plan, and in return they agreed to sell us these two properties,” said Stephan Elieff, SunCal’s president and Bruce’s brother. “They are two very nice investments.…It signifies the end of a very long battle.”
Lehman emerged from bankruptcy-court protection in March under a liquidation plan. In late May, Lehman sold its majority stake in LCOR Inc., a real-estate development company, to a pension fund for $820 million.
Lehman last year valued its real-estate portfolio at more than $13 billion.
Source:
http://online.wsj.com/article/SB10001424052702303444204577462692722085580.html
Hat tip to Christine Thresh who alerted me to the Business Times article where she stated, “Major Bethel Island project , Delta Coves, is in the news again. When I came to the island in 1979 it was going to be built any minute.”
16 comments
Lets see if the county supervisors are smart enough to make them build a fire station first.
We really need it.
Building the fire station is the cheap part… staffing it is where its the problem.
Burk,
You are 100% correct. Unfortunately the few uneducated refuse to understand the concepts, even when put in front of them over and over. The simple truth is, they just want to complain and don’t want to face facts…..this is why they continue to offer nothing but distractions.
Obviously that is why Millie and a few select individuals continue to be ignored by the decision makers, local officials and fire department.
Apparently they believe that posting ridiculous comments on a blog will get them some action. Nothing could be farther from the truth. What a joke.
P.S. Millie, you seem to have nothing but time on your hands. If you are really concerned and believe your comments have value, why don’t you “drop a dime” and call the Fire Dept. board directors or your county supervisor? Oh that’s right….you are on a “fixed income” and probably couldn’t afford the ten cents for a phone call. You know they all have emails right? Have you sent them an email or do you find that your blogging is working for you?
Let’s see if YOU are smart enough to figure it out.
Millie, you seem to have nothing but time on your hands. If you are really concerned and believe your comments have value, why don’t you “drop a dime” and call the Fire Dept. board directors or your county supervisor? Oh that’s right….you are on a “fixed income” and probably couldn’t afford the ten cents for a phone call. You know they all have emails right? Have you sent them an email or do you find that your blogging is working for you?
Let’s see if YOU are smart enough to figure it out.
Rather than being mean to people maybe you should listen to your own advice and come up with actual solutions and bring them forward. And lets be clear, the add-on tax thing has been voted down all over the county so it is not a viable solution any time soon, especially under the present FD configurations.
I think the point is, with this housing tract emerging again on BI and with the Pantages tract in DB working its way through approval….there is a very viable public safety impact fix related to these tracts and it involves a CCC well established and well used mitigation program to raise new funds from specific developments that put a strain on infrastructure services, especially in unincorporated parts of the county. The P-District/P-tax program (or something like it) can be placed on a new development as a Condition of Approval and the annual proceeds used to support a specific intent such as fire/ems operations. P-Districts that support additional policing are well established and in place all over the county. The good thing about this program is that this mitigation tax is known to the home buyer up front before purchase so the buyer can make the decision to buy that home with the tax attached or buy a different home (an older home or a home in different location) that does not have the tax.
I have brought this specific issue before the fire board and all I got were the typical blank stares that every single suggestion that was not a general tax hike received. I have also taken this issue to the supervisor whose district pantages in is. From what I am told this supervisor is in love with developer campaign money and will not do anything upset the flow.
These two tract developments are definitely going to put additional strain on an already strained system…it is time for the BOS to put public safety in front of their own economic/political objectives and do the right thing even if it ruffles the feathers of their tract housing developer friends.
cheers
590 homes in Delta Coves. I believe it is 285 in Pantages or a total of 875.
Current budget deficit of the fire district is $3.8M to get back to reasonable coverage levels excluding the federal stopgap funding.
Zero chance that housing values will recover at a sufficient rate to meaningfully close the gap. Keeping in mind that operational costs continue to climb at a rate exceeding home value increases.
So are you proposing a $4500 per year assessment on these proposed sites over and above the 1% they will normally be assessed? With a yearly kicker that would have to exceed CPI just to keep up? Do you consider that realistic or “viable” as you called it?
Then there is the fact that you won’t have that full revenue stream for 10 years or more as the units are being built. What are you planning to do in the interim?
Would seem to be a basic math problem with your plan. That might explain some of the blank stares you’re getting.
@Jeff
No one is being mean, they are simply educating someone who is small minded and a short term thinker.
@ Jeff,
It’s amusing that you confuse common sense for “being mean”.
Therefore it comes as no surprise that you mistake the reality of the blank stares you often receive as a shortcoming of others instead of your own. ie; “I have brought this specific issue before the fire board and all I got were the typical blank stares “. Sorry to be mean, but are you really that out of touch with human nature? (Hint; They are staring at you in disbelief and no doubt your eloquent delivery).
Don’t you find it odd that you are the only one that thinks you are so brilliant? Maybe it is high time for some outside help, or some self reflection? Those stares are a signal that you are not typically making sense.
There is an actual solution to which I agree. We the people have voted to get the service we pay currently pay for. In this case since the majority equates to 66 percent instead of 50 + 1 that service is often dictated by the minority vote (as it was with Measure Q). Therefore reduced revenue=reduced service. You example of “P” districts is irrelevant since policing is mandated, fire service is not. I have read more than once where you have been personally reminded of this caveat. You don’t get to re shuffle the deck and in your case specifically, you don’t get a vote (News flash; residency is a requirement).
Jeff, you really don’t get it do you? Based on your repetitive ramblings which make no sense (except to you), blank stares are a nice way of others dismissing your ignorance. Believe me pal, you are not stunning anyone with your intellect, you’re a psychologist’s dream date.
Neither supervisors Glover or Peipho had a campaign or election and both live in far East county. You really think either one would want to risk their own fire protection as you imply? I don’t think either supervisor has approved any large scale housing projects. The urban limit line put that to rest and (us) the voters determined where future growth is to occur.
P.S. as a long time east county resident I can tell you that the delta coves project was approved (mitigated) decades ago and ownership changes do not open the door for renegotiation. So if you are suggesting going that route, that ship has already sailed.
If I remember correctly, several years ago the developer of Delta Coves was offering to build a Sheriff Substation at the development not a fire station. As to a fire station, if you would look at the East Cypress Development Plan, there is to be a fire station built at Bethel Island Road and East Cypress Rd. When I questioned the city if this was to be a new station or a replacement for Station 95, I was told a replacement station. Now even though I was being told this (and anything else the city thought we wanted to hear), I knew that the city didn’t have the authority to close the Bethel island Station and move operations to a new station near their developments. With all the issues at the old station, the people of Bethel Island need to understand that that building will never be a fire station again. So unless they can come up with the big money needed to build a new station, they need to start pushing for a change to the development agreements that Shea has with the city and get that station built NOW not when so many homes have been built. BUT even if a new station is built, we don’t have the funds to staff it. The reality of these time is that things that we have taken for granted for years can’t be supported any longer. We have assumed that there will always be firemen to respond to all our calls anytime, day or night. We have assumed that there will police officers around the corner to keep us safe from the low-lifes that have moved into the area. Well, that just isn’t true anymore. We are more interested in the “wants” instead of the “needs”. Soooooooo, are you willing to pass a tax to fund the fire dept?
Oh please mr. jiggs…read what I wrote then read what you wrote. you could not possibly be responding to my statements based on what you wrote.
time and time again I have said complex problems have complex solutions and in this case the solution will be multifaceted. A P-type mitigation fee levied on these new tracts is simply one facet of a long term solution. every possible component of the solution matrix must be pursued.
and once again I must take this opportunity to say the corner stone of the solution matrix is a NEW leveraged county fire/ems entity that has a wage scale/comp package less than con fire now pays.
The CCC BOS is the key to making this happen or to the continued path of failure.
So your final best offer for an idea is being stuck on the misuse of public funds plan? Really, the blank stares you’re getting are not a mystery here.
I don’t think you’re following along with the news. You are not getting sufficient applicants for the substandard wages and benefits you’re offering. 134 applicants when you have up to 19 billets to fill is a horrible ratio. In fact, there is a real question of whether or not after the process plays out that you have a sufficient number of people to fill the slots.
For historical comparison, a 200 spot opening in I believe it was San Jose brought out 5,000 applicants.
This is a tried and test formula. The Chief and senior fire officials could tell you right now based on existing stats how many of the 134 will probably make it to the end and be accurate within +/- 2.
Now we roll into town with your solution: to bring the ECC wage/benefit offerings to all of ConFire. The roar you hear will the the senior people leaving town. For those close enough to retirement, get while the gettin’s good. For the rest, immediately start looking for other districts that don’t have people like you insisting we start treating our professional fire fighters like the household help you abuse.
Then you are going to attempt to backfill the spots you caused to open up with a wage package that doesn’t work for East County. But you think it will work in central county with even higher property values and cost of living to contend with? Where and when did you get stuck on this idea that people will suffer commuting long distances just to serve your cheap ass? If you didn’t get the memo, the theory was just disproved with the applicant pool here.
Your model doesn’t work. The lack of appeal to applicants for your benefit offerings is obvious. The proof is all but in the form of a neon sign right in front of you. Some slow on the uptake can be excused. But this is into the ridiculous category.
You do not get to dictate how much public employees make in your little hamlet and then still expect them to beat down your door while there are better working conditions elsewhere. This is historically dysfunctional thought process, even for you. And you’ve got a few doozies already in the repertoire.
Witnessing this insane game of chicken over public safety is surreal. Arguing over a first ever increase in fire service costs since the days of Prop 13. All while your gas budget has done a roller coaster ride with an amount far, far more than what’s at stake in this discussion and your utility rates have experienced increases into the mid double digits over just the last 2-3 years.
What an amazing lack of perspective you and your clan seem to suffer from.
Jigs,
Don’t sweat Jeff B. He obviously is a little slow, very weak minded, and far from center when it comes to conventional thinking. He apparently gets his affirmation from no one but himself, while constantly looking for a pat on the head. Unfortunately he only gets “blank stares” which he can’t process. I have heard he didn’t have many friends when he lived here and made a long list of enemies. I can only conclude that is why he doesn’t stay in on place too long and has moved on to Utah. Too bad he is stuck on trying to fix that which he doesn’t understand instead of working on his own deep seated issues.
He is nothing more than an Internet troll with big personal problems and a habit of whining about everyone & everything! (Do a google search on him). What you will find is disturbing. I find it sad that he continues to demonstrate his shortcomings beyond his short stay in east county.
Mr. B-Wood,
You are a silly little person with much more time on your hands than any of us senior citizens. Look at all the comments you put on here. You seem to comment negatively on everything and at everybody. Since you are so smart and have all the skill and knowledge with excess time on your hands, why don’t you just fix the fire departments problems by joining their commission? You know how to talk down to people who do not agree with you too. Get off your lazy butt and actually do something instead of flapping your jaw through the keyboard all the time. You probably are on some kind of government assistance I bet. You are worse than a cry baby. Grow up, you can’t even comment under your name you silly little pest.
Millie
@Millie, while I will not defend B-Wood’s comments, that is up to him/her, I would encourage you to do the same and use your real name. I do know who you are along with the many other “handles” you have used in the past so keep that in mind going forward. Seems somewhat hypocritical of you to call out B-wood using a handle while you are doing the exact same thing but on a much grander scale. Think about it.
Mr.Burk,
The handle I have is the one I use when I am on my computer, “Millie” Parkerly. Email me anytime if you have something good to say. [email protected] I do not take well to insults such as the ones Mr.Ms. B-Wood makes against me. At least you tried to get involved in change for us, B-Wood is just a fowl person.
Millie
@Millie,
There you go flapping your wings again. (A lot of noise, dust and little action). Once again playing the senior citizen card like it is some get out of jail pass for you. Ok we get it, you want us all to be aware you are old and on a fixed income. Big deal.
Your retort was…. shall I say predictable?
Yeah, I am a mean SOB and I use an alias but I feel I have earned the right. Incase you didn’t notice, this is a blog and reality is a real bitch. If you haven’t by now, get used to it.
Let’s get a few things straight “Millie”; no one is forcing you to be here-or to read my replies. If you don’t like getting blasted with reality against your postings (which are nothing more than incorrect assumptions), then you are free to abandon ship.
As for the rest of your assumptions…..you might be surprised to know that I carry an AARP card. That’s right old hen, I am retired and not on government assistance-never have been. Im the one that pays high taxes that keeps people like you comfortable with your freedoms. Most likely I have been around the area (Brentwood/Bethel Island) longer than you. Care to make some more foolish assumptions? You are showing more ignorance than age (or wisdom).
Perhaps you need to rethink your knee jerk assumptions. How do you know that I am lazy? Maybe I have put in enough public service for 3 people or then again maybe not. Just be very careful of the stones you cast when you are making those wild assumptions of yours. It actually proves you are full of baseless opinions and have a very low batting average when it comes to being right. Just curios, how much public service have you provided or are you just a taker and complainer?
Millie, let’s just say you are way out of your league trying to minimize my positions with your maligned (and often repetitive) comments.
Sorry I am so mean, but I have no palate for shills, games or ignorance. You seem to consistently top that list. Your a grown up and frankly, I don’t have the time or patience to sugar coat it. Comprende amigo?
Comments are closed.