Sunday, March 16, 2008

Bloomberg.com: U.S.

Bloomberg.com: U.S.: Big Las Vegas developments in trouble: "March 15 (Bloomberg) -- Two Las Vegas housing projects have each missed an interest payment in recent weeks on about $765 million of debt and are holding talks with lenders, the Wall Street Journal reported, citing development partner Focus Property Group. The Inspirada and Kyle Canyon Gateway ventures, which include Toll Brothers Inc., KB Home and Lennar Corp., have received default notices, the newspaper said, citing Focus Chief Executive Officer John Ritter. The 2,000-acre Inspirada project was expected to develop as many as 13,500 homes over the next seven years, though only about 162 homes have been sold so far, the Journal cited Ritter as saying. He now expects the project to last between 10 and 15 years because of a severe housing downturn in Las Vegas, the Journal said."
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Being near a failed real estate development is bad news. I say that as one who lives a mile or so from two of them, courtesy of bankrupt Neumann Homes.

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