Sacramento Bee: 3 posh projects go bust as Valley dreams bite the dust
Submitted by jboeger on Sat, 10/11/2008 - 21:00
McAllister was going to be a big-time operation, with 6,000 homes and a host of amenities. Developer SunCal Cos. of Irvine borrowed $235 million from Lehman Bros. – part of a $2.2 billion war chest Lehman handed SunCal to develop properties throughout California and Nevada.
SunCal had a grand vision for Bakersfield. After buying out the original developer, it doubled the asking price for individual lots, to $115,000.
But once the market petered out, "those prices were no longer viable," said ex-project manager Darryl Tucker.
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