Irvine-based master developer SunCal Cos. is set to retain ownership of three big developments in California, after being the winning bidder in a bankruptcy auction this week, according to reports.
An affiliate of SunCal won this week’s auction for the three properties—Bakersfield’s McAllister Ranch development, and the McSweeny Farms and SummerWind Ranch developments in Riverside County—with a $71 million bid, according to Dow Jones’ Daily Bankruptcy Review.
That’s $1 million more than the maximum bid its onetime financing partner, Lehman Brothers Holdings Inc., was initially allowed to make for the properties, according to court documents.
The deal’s still pending court approval and hasn’t been finalized, sources familiar with the case said on Friday.
The three projects SunCal’s set to retain total more than 5,000 acres, and could hold up to 11,000 homes.
The projects have been operating out of bankruptcy protection for more than two years, and have more than $300 million in debt tied to them. They were recently valued at about $62 million
The three developments are being handled separately from the bulk of SunCal’s other bankrupt properties in Southern California, including San Clemente’s Marblehead development.
Lehman was initially allowed to make a credit bid of at least $45 million and as high as $70 million in the auction for the properties, according to court documents.
A Marina del Ray-based developer was later installed as the stalking horse bidder for the three properties.
