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2008-04-30

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stories: oregonlive.com

A "tiny" implosion, Tony Marnella's Oregon-based home building companies have filed for Chapter 11 bankruptcy protection. The companies seeking protection are Landing Development LLC, 550 Investments LLC, Tony Marnella Inc, and Tony Marnella, himself, according to The Oregonian.

We are unsure as to whether Marnella Homes LLC (marnellahomes.com) is involved though it is another company owned by Tony Marnella.

Per The Oregonian:

[The three companies seeking protection] collectively owe about $24 million, the bulk of it to two lenders - Sterling Savings Bank and MW Housing Partners III LP, an affiliate of timber giant Weyerhaeuser.

Susan Ford, Marnella's bankruptcy attorney, said slow sales at a Happy Valley townhome development were primarily responsible for the bankruptcy. Marnella unveiled his Volare at Eagles Crest, a 115-lot development, last July, just as the mortgage crisis worsened the already slowing real estate market.

Landing Development has built more than 25 homes at Volare. The rest remain empty lots.

Happy Valley is generally recognized as one of the most overbuilt communities in the metro area, along with parts of Clark County, Wash. The Clackamas County town has proven difficult territory for more than one developer due to super-heated growth in recent years.

We were able to find what appears to be Tony Marnella's blog (tonymarnella.wordpress.com). The last post was a week ago on April 23, 2008. Therein, Tony sounds upbeat about real estate generally. An optimist until the end?

If you have any further details on these implosions, please let us know.

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Comments:

NW Climber at 02:48 2008-10-29 said:
Maybe Marnella Homes should be doing what Pacific Lifestyle Homes is doing.

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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.