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Sunday, December 13, 2009

Large Apartment Developer Files for Bankruptcy

by Calculated Risk on 12/13/2009 06:29:00 PM

From the WSJ: Fairfield Files for Chapter 11

Fairfield, which has built some 64,000 apartments, condominiums and off-campus student-housing units throughout the country, failed amid an inability to refinance debt or sell investment properties.
Their main two lenders were Wachovia (now part of Wells Fargo) and Capmark Financial (now in bankruptcy). This is also another hit to a Morgan Stanley real estate fund and others:
The bankruptcy is also a blow to the California State Teacher's Retirement System and a subsidiary of Mitsubishi Corp., both of which invested in Fairfield over the years.

A Fairfield spokeswoman confirmed that investors including the Morgan Stanley fund and CalSTRS would be wiped out by the bankruptcy but said they would continue as joint-venture partners on Fairfield projects.