California Luxury Housing Facing Bank Foreclosure Home Sale

by on States

The Retreat at Stone Eagle located at the Cahuilla Hills is regarded as one of the most resplendent luxury housings in California. Designed by Altervers Associates for Ministrelli Development, The Retreat’s multimillion dollar houses stand tall from the craggy canyon, mirroring the look of the northern Costa Smerlada in Sardinia, Italy.

The home price ranges from $2.2 to $3 million, representing an epitome of wealth. But now, the luxury housing development is facing the threat of bank foreclosure home sale following the filing of foreclosure action against the Stone Eagle Golf Course which is the major selling point of the project.

The Tom Doak-designed golf course is woven into the design of the 700-acre housing development. According to golf course members, they have been approached to shell out $100,000 individually to save the Stone Eagle Golf Course from foreclosure.

Pacific Western Bank President Bill Powers confirmed that Stone Eagle Golf Course received a Notice of Default which is the start of the foreclosure process. The golf course was constructed by LDD Desert Development Inc.

LDD Desert President Ted Lennon said that he is discussing possible solutions with Pacific Western and some golf course members. He explained that the club has suffered in the economic downturn but is still operational. In fact, the club is still selling memberships and had sent out tournament announcements and schedules for this year.

He added that discussions are being made with over 200 golf course private-equity members on potential ways to raise funds as well as restructure the almost $24 million mortgage of the Stone Eagle Development.

According to industry experts, the luxury housing project is not part of the foreclosure but the action could greatly affect the development as the golf course is the main selling point. Already, sales on three condominiums have been postponed.

So far, the Ministrelli Development has constructed eight luxury houses in the area and have closed sale on four. Five custom homes have been constructed at the project and 19 lots are on sale with prices between $275,000 and $900,000.

Industry experts said that the housing and golf course projects are doing just fine until the economy took a plunge. For now, the golf course is relying on its membership for survival, with almost a 100 percent paying their dues to help the Stone Eagle Golf Course remain on track.