| Casualties and survivors: Developers hard hit by economic downturn
After the local and national economies began tanking several years ago, the Colorado Springs-area real estate development industry prepared for the worst. The market for the product, which would be built on that ground, is non-existent today. "Every situation which we're involved in is a dogfight," he added. But the company will survive, Steve Schuck said. "This environment provides unique opportunities and we are taking advantage of them," Schuck said. e expectations and demands of lenders, Steve Schuck said. More recently, the company sold its interests in the high-profile, 6,300-acre TransPort business and industrial park near Denver International Airport. A developer who once described real estate wheeling and dealing as "my form of gambling," Morley said he owes more than $10 million to creditors, although he declined to say how much. Morley no longer lives life in the fast lane; golf club memberships are gone and vacations are few, he said. "There were occasions when the future looked bleak, and the bleakest moment was when we lost our syndicated credit provider," he said. Conditions have gradually improved, Stimple said. Between the new home and resale markets, Stimple said, "there's a feeling of health that hasn't been there for the last few years. Frankly, we were an industry that needed a little of that. "It's an optimistic story," he added. In 2004, La Plata sold 336 residential lots to homebuilders; six years later, lot sales had fallen to 53. Like other companies, however, La Plata is seeing small signs of market improvement. It also expects to develop 80 lots this year, after having developed none last year. Hiring might be in the offing, too. SRKO's bankruptcy remains bogged down in U. Bankruptcy Court in Denver. , was appointed as trustee to oversee Richardson's personal bankruptcy and was named manager of SRKO's general partner developers and real estate companies will bump along as they try to get past their financial woes, Schuck said. "This recession has endured longer than any in our lifetime," Schuck said recently, acknowledging his company has seen its share of trouble. "It clearly is not over," he added. "were developing the 21,500-acre Banning Lewis Ranch, which makes up most of Colorado Springs' east side, sought Chapter 11 bankruptcy protection in October 2010. Ultra Resources, a subsidiary of Houston-based Ultra Petroleum, paid $20 million for 18,000 acres of the ranch and wants to drill for oil and gas on the property. Colorado Springs officials, however, placed a moratorium on oil and gas exploration until May so that a city task force could evaluate how to manage the industry. Ultra and the city also have been in court over the company's exploration efforts; the company wants to set aside various regulatory controls that were put in place when the ranch was annexed by the city in 1988. A 2,400-acre portion of the Banning Lewis Ranch, meanwhile, was purchased for $24. A limited liability company formed by KeyBank put the property up for sale, and it's now under contract to Oakwood Homes, a Denver-based homebuilder that also develops residential projects; the sale is scheduled to be completed this month. Oakwood CEO Pat Hamill has said the company plans to develop the property with residential uses. Development of the ranch's northern portion began nearly five years ago, southeast of Woodmen and Marksheffel roads. sues. Sanctuary's $25. 2 million foreclosure ranks as the biggest in El Paso County in recent history. Nor was it forced into layoffs; the company still maintains a staff of 36 people, Jenkins said. But that doesn't mean the company has never been affected. Among other projects, the company continued with development of its First their claims totaled about $26 million. The SRKO Family Limited Partnership was the entity developing the project, although its bankruptcy filings identified longtime Springs developer Jannie Richardson as Colorado Crossing's driving force; the filings showed that SRKO's ownership was controlled by her and her three adult children. The multi-millionaire Loo family of Colorado Springs has been Briargate's financial backer since buying the remaining 4,500 acres of the development in 1995. Even with financial health, "we took the steps necessary to stay that way," Quimby said. id. There are a few signs that some segments of the development market have turned the corner. In either case, highly leveraged developers had the most trouble keeping their heads above water, Gruen said. Casualties and survivors: Developers hard hit by economic downturn |
Sunday 13 May 2012
Casualties and survivors: Developers hard hit by economic downturn
