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Lenders Gain Back $335M from Halted Inspirada

HENDERSON, NV-The 2,000-acre mixed-use project, with up to 14,000 homes and 700,000 square feet in retail planned, halted and went into bankruptcy following the recession.

By Robert Carr | Updated on November 23, 2011

HENDERSON, NV-Some of the lenders for and former homebuilders of the 2,000-acre South Edge/Inspirada project have come to an agreement following a forced bankruptcy and a year of negotiations. The two sides, along with a court trustee, have agreed to a creditor reorganization plan that will allow lenders such as JP Morgan Chase to gain back about $335 million after the large project was stopped when the housing market crashed.

Eight homebuilders, including Horsham, PA-based Toll Brothers, Los Angeles-based KB Home, Atlanta-based Beazer Homes Holdings, Las Vegas-based Focus Property Group and Los Angeles-based Pardee Homes had planned to build up to 14,000 single-family homes and up to 700,000 square feet of retail. The builders, using loans from lenders such as JP Morgan, purchased the 2,000 acres here in the southwest corner of the Las Vegas Valley in a June 2004 federal auction for $557 million.

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