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Pacific Century Homes - California, Arizona, Texas home builder

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2008-08-15

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stories: statesman.com

Update to status, "Imploded" 2008-08-15:

We have learned that William "Bill" Lo, Chairman and CEO of Pacific Century Homes, has filed for Chapter 7 bankruptcy protection per a PACER filing on August 1, 2008.

Original Ailing write-up 2008-08-15:

Word has come to us about Pacific Century Homes and Pacific Summit Partners via tips and an article posted on statesman.com. Per the article:

The California-based development team Pacific Summit Partners entered the Austin market with a bang in 2005, investing more than $100 million in land from Southwest Austin to Liberty Hill in just two years, with plans to build thousands of homes.

Now financial troubles such as foreclosures and ballooning late payments have jeopardized or erased those plans, as Pacific Summit Partners and its associated partnerships and companies have fallen behind on payments for nearly everything needed to build homes, including land, concrete, shingles, pipes, carpet and blinds.

...

At least 141 of the 326 acres involved in Pacific Summit's highest-profile local project, Lakeline Station near U.S. 183 and RM 620, have been posted for foreclosure after the group failed to make at least one quarterly payment to the landowner, William Savage, according to documents provided by a foreclosure reporting service, RexReport.com.

About 230 acres near Liberty Hill have already been foreclosed on and are again on the market, listed for sale on a commercial real estate Web site.

Pacific Century's website (as well as what appears to be the website for Pacific Summit Partners) is currently down (See pacificcenturyhomes.com).

According to one tipster:

They were mostly in California but recently expanded into two communities in Arizona. The Savannah community in Litchfield Park, AZ has been abandoned and is scheduled to foreclose in October. Their website seems to be down as well.

...

The most information I have is on the Savannah neighborhood ... They bought 76 already improved lots on 4/18/07 from Standard Pacific for $6,840,000. The came in and built 3 models and 3 specs. They never sold a single house, although they did have 1 new build ordered that still sits at frame. Now IndyMac has filed a trustee's sale notice for $20,565,000 on the property. I wonder where all that money went? It seems to me that $270,592 per lot is more than they ever could have profited actually building the houses. ...

The Statesman article is dated mid-July. We've not yet seen any further data on Pacific Century or Summit. If you have any information with regard to the size of their operation or their current continuing business operations, please let us know!

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Important: This company is on our list of builder operations that have "imploded" (see also ailing lenders). This is a somewhat subjective call, and does not necessarily mean total shutdown or bankruptcy. It can also mean steep and rapid declines in enterprise value; or abnormal "bail-out" by corporate parents or peers in order to continue to operate. The builders may be residential or commercial.