San Francisco Chronicle: Neighbors sue Lehman Bros. over Oak Knoll site
In 2005, SunCal Companies, a real estate development company based in Irvine, purchased the property for a whopping $100 million in an online auction. But when the developer's financial backers, Lehman Bros., filed for bankruptcy in September 2008, SunCal lost its financial partner in 20 real estate construction projects across California, including the Oak Knoll. The rapid devaluation in Lehman's commercial real estate holdings, which fell alongside the housing market, was identified as one of the reasons for the company's collapse.
Separately, SunCal has filed a lawsuit against Lehman in a central California court in an attempt to stem its losses and liabilities. SunCal is also the developer at Alameda Point, the new development planned at the former Alameda Naval Air Station.