SunCal: Alameda project not backed by Lehman
Just wanted to put a quick word out that the SunCal folks – who have been pretty widely name-checked as perhaps part of the reason bankrupt investment titan Lehman Brothers slid into oblivion – are getting the word out that Lehman wasn’t a backer of the proposed development out at Alameda Point.
Per SunCal spokesman Joe Aguirre:
“The bankruptcy filing by Lehman Brothers Holdings Inc. does not affect SunCal Companies’ development in Alameda. SunCal partners with various lenders and investors throughout the more than 50 developments in its extensive portfolio, and Lehman is not involved in Alameda Point in any way. Every development has its own project-oriented partnership with its own investors, and each holding is wholly separate from the others. SunCal Companies, as its name indicates, is made up of many companies, and it is privately held.”
Lehman apparently did back a number of the developer’s Southern California projects, per this brief item in the New Mexico Business Weekly with a similar statement about a proposed megadevelopment in Albuquerque. Like that development, SunCal’s working with D.E. Shaw out here as a financial partner, though the exact terms of the deal are unknown (that said, we’re pretty sure one of staff’s key concerns about it was that the projects SunCal is doing with D.E. Shaw are not actually financially separate, if we read this staff report correctly).
SunCal is slated to deliver its preliminary development concept for Alameda Point on Friday. Stay tuned.