Interesting post.What's amazing is that in the 12 months since this SunCal fueled saga took off, the housing market in OC has totally collapsed. And the last 90 days of the credit crunch and what it means for the next five+ years of homebuilding has just put a deadbolt on the closing door.
Here's another Anaheim example from a condo developer with much deeper pockets than SunCal:
Lennar just spent tens of millions of dollars prepping the land for Platinum Triangle with sewers, streets, sidewalks, electric/data cabling, etc. in anticipation of building 5,000+ housing units. Lennar was going to build a dozen condo towers between 24 and 35 stories tall on all of these new streets they've created. They've spent three years getting it all ready, and the first units were to begin construction in a few months and the first homeowners were going to move in by 2009.
But now... it's all been stopped. Lennar has announced it has suspended construction on any new housing in Anaheim's Platinum Triangle. Lennar is capping off the new infrastructure, and the streets and blocks and parks will all sit there empty. The market for pricy condo's in OC has evaporated in the last 90 days, and now there is no market for what they are selling. Pundits are saying there won't be anyone living in Lennar's Platinum Triangle development until 2012 at the earliest. Maybe even later.
And SunCal is right in there with them. Who in their right mind would build 1,500 shoebox condo units packed in next to a freeway now? No one is left to buy such a product. And yet SunCal has to stick to its guns for awhile longer lest they lose a whole lot of face. Disneyland will still be in business in 2009, and 2012, and 2020. But where will all these developers be who were fueled on an over-hyped, over-priced, and purely speculative home market built on dodgy lending from now-bankrupt mortgage brokers? Who is SunCal going to sell 1,500 condo units to exactly?
Buh-bye SunCal. And Lennar. And D.R.Horton. And all of the other developers trying to build condo's in Anaheim. Disneyland will still be doing business in Anaheim this year and in the future, but don't let the door hit you on your way out of town.