Wachovia Corp which is being acquired by Wells Fargo is suing 6 home builders for failed Nevada developments.  The builders being sued are KB Homes, Toll Brothers, Lennar Corp, Pulte, Meritage Homes and the Ryland Group.

Wachovia said, ” Focus Kyle land developers and eight home builders (2 of which were not sued) defaulted on guarantees to a develop a planned community in Las Vegas.”

The development which was to be called Kyle Canyon Gateway with 16,000 homes on 1,710 acres.  It was to include parks, a pedestrian plaza, with miles of trails, paths, and walkways.  This according to Commercial Property Magazine.

Focus Group has come under financial distress with other master-planned communities in Las Vegas, including Mountains Edge, Inspirada, and Providence.  Citing un-precedented market volatility and disruption in the financial system over the past 60 days and especially the last two weeks.

None of the homebuilders had comments or did not return phone calls.

Tags: Builders, Las Vegas, Las Vegas Real Estate, Millions, Sue

This entry was posted on Friday, October 31st, 2008 at 10:31 am and is filed under Las Vegas Real Estate. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.