Here is a project you probably never heard of unless you follow the happenings in Spanish Springs.  Sonoma Highlands was to have up to 2510 units in 16 villages, an elementary school, and a village center with parks and retail.  It included the first portion of the Sun Valley Arterial road which will (would) eventually serve as a southern connection from Spanish Springs to Sun Valley.  To get an idea of the scope of the project, you can take a look at the Project Book.  It is a good example of what developer’s have to go through to get a major project approved.

Though not the most costly financially, I believe it is the largest project by unit count to go into foreclosure in our region.  Sun Cal’s Copper Canyon project was only 2000 residential units.  The land for the project was purchased (more likely transferred between related entities) on 28 October 2007 for $9,301,870 with a $12,3000,000 Deed of Trust.  Take a look at the parties lending the money – you will recognize some of the names if you follow Reno real estate and I figure that is why you are here!  The previous sale was for $2,528,050 on 26 March 2003 to La Hacienda Joint Venture formerly La Hacienda Estates LLC, and there is a lot of history if you search the Recorder for those entities.

The Project Book was approved on 3 February 2009, and Sonoma Highlands LLC defaulted on their payment due 28 October 2009.  The NOD was filed on 19 July 2010 and the NOS on 10 December 2010.

So who is Sonoma Highlands LLC?  The corporate directors are DDH Financial aka Kreg D. Rowe, and B & L Investments aka Brett Seabert.  Both are directors of Tanamera Development, and all the entities share Tanamera’s address at 5470 Reno Corporate Drive, as did La Hacienda.  Is it pretty safe to say that Sonoma Highlands is a Tanamera project, especially given their oenocentric project naming fetish?

My guess is that the investors including the Tanamera principals will see about $10M evaporate.  On the bright side, the developer hadn’t started rape and scrape (site prep) yet and the project won’t become the eyesore that many of the failed projects have become.

Advertisements