Albuquerque Journal: SunCal May Face Foreclosure
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.