Uh Oh Stapleton (Denver, Westminster: for sale, real estate, credit)

[steveindenver]

Looks like your run of good luck might be ending.

First Forest City puts a stop to spec building; then Forest City hits a rough patch with creditors which remains unresolved.

Then the high dollar Urban Estate auctions start happening and now ...

John Laing homes has closed up shop (for all intents and purposes). No new homes, no completion of homes currently under construction (even those within days) and it looks as if most homes that closed recently also have liens on them. No warranty work, nada.

Let's play a guessing game. I'm guessing McStain goes next followed by Parkwood. I think most people would agree they would love to see KB fold up shop but that seems less likely. They produce trash with better margins than most -- because they produce trash.

Note, I still love the concept that Stapleton offers and suspect they will do much better than other areas in the near, mid and long terms. This sort of things is nothing new in the exurbs of Denver; I was just surprised to see it happen in what has been (and may continue to be) a pocket of appreciating new homes in the urban core.

Also to be fair, John Laing was in my view a good reputable and quality builder. They have no doubt suffered some serious setbacks with their exposire in CA and AZ, and I am surprised that a company which sold for over a billion dollars just a couple years back to the Dubai based Emaar properties would so quickly crumble, but it is a ****ty world out there right now all around.

[denverian]

Where did you get that information from?

[denverian]

Originally Posted by steveindenver

Looks like your run of good luck might be ending.

First Forest City puts a stop to spec building; then Forest City hits a rough patch with creditors which remains unresolved.

Then the high dollar Urban Estate auctions start happening and now ...

John Laing homes has closed up shop (for all intents and purposes). No new homes, no completion of homes currently under construction (even those within days) and it looks as if most homes that closed recently also have liens on them. No warranty work, nada.

Let's play a guessing game. I'm guessing McStain goes next followed by Parkwood. I think most people would agree they would love to see KB fold up shop but that seems less likely. They produce trash with better margins than most -- because they produce trash.

Note, I still love the concept that Stapleton offers and suspect they will do much better than other areas in the near, mid and long terms. This sort of things is nothing new in the exurbs of Denver; I was just surprised to see it happen in what has been (and may continue to be) a pocket of appreciating new homes in the urban core.

Also to be fair, John Laing was in my view a good reputable and quality builder. They have no doubt suffered some serious setbacks with their exposire in CA and AZ, and I am surprised that a company which sold for over a billion dollars just a couple years back to the Dubai based Emaar properties would so quickly crumble, but it is a ****ty world out there right now all around.

And seriously, referring to peoples' homes as "trash" is, well, trashy. I know plenty of people who've worked hard to buy a KB home and they don't have issues with them, and they look just fine. You come across as some sort of snob toward people who can "only afford" a $375K house.

[Bradburn1]

What a bummer!!! John Laing built some good homes. I know McStain is having a hard time, they put their mixed-use community they were just starting up in Westminster (called Hyland Village) "on hold" a month or so ago. A shame, it had a cool design and super cute, great looking houses. I hope they can weather the downturn, everyone in Bradburn who has a McStain is really happy with their service and their green building aspects--especially having solar panels standard on their homes.

Stapleton is a great place, I'm sure it will come out great in the end, it just will take a bit longer.

[denverian]

Originally Posted by Bradburn1

What a bummer!!! John Laing built some good homes. I know McStain is having a hard time, they put their mixed-use community they were just starting up in Westminster (called Hyland Village) "on hold" a month or so ago. A shame, it had a cool design and super cute, great looking houses. I hope they can weather the downturn, everyone in Bradburn who has a McStain is really happy with their service and their green building aspects--especially having solar panels standard on their homes.

Stapleton is a great place, I'm sure it will come out great in the end, it just will take a bit longer.

I haven't been able to confirm or deny the rumor posted above. If a builder is going to walk away from half-built homes to let them rot, then that's going to affect property values and I guarantee an uproar from people in Stapleton. This is a high-profile development that gets a lot of attention from the Mayor.

[2bindenver]

High-end homes up for auction, an article from Rocky Mountain News, reports that seven Stapleton homes are being offered for sale online through March 5. These homes were originally priced at more than $1 million each. Four of the homes are in the Denver Brownstone development and three are in Urban Estates Homes - none have ever been occupied. For years, Stapleton has been one of the hottest housing markets in metro Denver. "We support any efforts any of our home builders need to do in this market," said Tom Gleason, spokesman for Forest City.
High-end homes up for auction : Real Estate : The Rocky Mountain News

[denverian]

Originally Posted by 2bindenver

High-end homes up for auction, an article from Rocky Mountain News, reports that seven Stapleton homes are being offered for sale online through March 5. These homes were originally priced at more than $1 million each. Four of the homes are in the Denver Brownstone development and three are in Urban Estates Homes - none have ever been occupied. For years, Stapleton has been one of the hottest housing markets in metro Denver. "We support any efforts any of our home builders need to do in this market," said Tom Gleason, spokesman for Forest City.
High-end homes up for auction : Real Estate : The Rocky Mountain News

I confirmed from an inside source, so it's true. My source says there are other builders lined up to get into the development, and inventory is still low. Laing hasn't been paying contractors and their problems could be related to out of state markets where prices have dropped significantly.

[steveindenver]

You come across as some sort of snob toward people who can "only afford" a $375K house.

They build homes everywhere; many (most?) cheaper than those in Stapleton. I'm not commenting on the price point, but the builder. I won't bore you with links, you can search for yourself, they have a long and horrible reputation.

Here is an artcile (recent) about John Laing and their problems: John Laing Homes reviewing all options for funding - Yahoo! News (http://news.yahoo.com/s/ap/20090118/ap_on_bi_ge/ml_dubai_us_homebuilder - broken link)

My further information comes after talking with a current homeowner earlier today. They were informed of the circumstances after filing a warranty claim. Not very happy people at the moment.

If a builder is going to walk away from half-built homes to let them rot, then that's going to affect property values and I guarantee an uproar from people in Stapleton.

Unless they can work out some sort of forbearance with the creditor they are going to have to. It is likely they will but if houses that are already closed still have liens on them it is unlikely anyone is going to continue to work for JL until they start paying their bills.

[movementarian]

I always thought the Stapleton area would be a good place to build an airport. DIA is starting to show its age. Maybe they can do that if this doesn't work out.

[EscapeCalifornia]

Originally Posted by movementarian

I always thought the Stapleton area would be a good place to build an airport. DIA is starting to show its age. Maybe they can do that if this doesn't work out.

Yeah Denver could use a close-in airport for the busy downtown-based business traveler.