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Business Journal: Developer Short-Selling Properties

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(Sacramento, CA)
Monday, July 5, 2010
A major land developer has completed a rather clever deal — almost losing and then getting clear ownership of a large property in Lincoln. Land developer Richland Planned Communities Inc., the second-largest land developer in the region, bought the 1,900-acre Moore Ranch in 1999. A decade later, the company owed about $40 million — but the land was worth much less as the real estate market tanked. So, the company did what many cash-strapped homeowners are doing — basically a short sale for the property. Now, the lender shopped the massive parcel around, but found few takers, except for Richland — which paid $11 million, almost a 75 percent discount, and got clear ownership of the land. Richland plans to hold onto the land and won’t develop the property for at least a decade.
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