SunCal Picks Up 1,072 Residential Lots for $20M

LAS VEGAS-The liquidation of Kimball Hill Homes closed escrow recently with SunCal Cos. and D.E. Shaw paying approximately $20.1 million for 1,072 finished and partially finished lots in lots in 11 communities in the Las Vegas Valley, according to the listing broker, Colliers International SVP Michael Stuart. The official seller and buyer were KHI Post Consummation Trust and KHI Acquisition LLC, respectively.

Irvine, CA-based SunCal is the largest privately held developer in the Western US. Kimball Hill Homes, a national privately-held homebuilder from Rolling Meadows, IL, filed for Chapter 11 bankruptcy protection in 2008. Stuart represented the company in the disposition of its Southern Nevada portfolio. D.E. Shaw manages funds and assets for institutional clients.

Keith Mitchell, national director of community development for Kimball Hill Homes said in a prepared statement that the deal was closed in just about two months. “This is nearly unheard of in this market, where it’s very difficult to find real buyers who’ll actually follow through with a deal this size,” Mitchell said. “In the end, we are as happy as we can be with the deal, as it offered maximum value to creditors.”

Brad Shuckhart, vice president of Land Acquisitions, SunCal Cos. said the company is looking forward to developing the lots “when market conditions allow.” He was not immediately available Friday afternoon to speculate on when that might be.