Coming as no surprise following the collapse of Lehman Brothers, SunCal's biggest backer of the Marblehead Coastal real estate development, SunCal has filed for Chapter 11 bankruptcy protection this past Thursday on this community according to the Los Angeles Times.  This 313 home planned coastal community in San Clemente represents just one of 23 SunCal housing projects in various stages of Chapter 11 due to the collapse of Lehman Brothers.  SunCal will need to make quick decisions on which communities to sell off and liquidate and which ones to keep in order to ride out the real estate storm.  SunCal, nevertheless, has indicated it has no plans to sell off Marblehead Coastal.  

SunCal  has indicated that it has "alternative sources" of financing to maintain the wetlands at Marblehead Coastal, some of the 125 acre open space to remain on this piece of land.  Hopefully the other communities that SunCal sells off will help to raise the capital to build this highly anticipated community once the real estate market settles and supports this type of development.  In the meantime, this 243 acre development sitting on an ocean front plateau will continue to be delayed and remain vacant.  Hopefully some good news will arise from this soon. (Marblehead Coastal is the yellow box at the bottom of the picture)

For more information on Marblehead Coastal real estate or to request updates from our team as they arise, please contact us.