Snohomish County real estate land developer Barclays North is shutting down.
Back in April, CEO Patrick McCourt went public with their financial problems.
Everett-based developer Barclays North has struggled since late last year to repay loans from nearly 100 banks and other lenders, according to court documents. Company officials said in court papers in January that Barclays North and its many affiliates were in default with at least 56 lenders, though most had agreed to hold off any action until the end of March…
“What got Pat into trouble,” said Britsch, was purchasing land in advance to supply “national contracts with very large builders,” who backed out after the housing downturn began in California and the Southwest in mid-2006.
Demand for undeveloped lots in Snohomish County “fell relatively hard and fast,” he said, “and when that happened the builders obviously didn’t need as many lots as anticipated. That left Pat and the banks holding this huge financial burden.”
Local state-chartered banks exposed to loan losses include Frontier Bank, Banner Bank, Shoreline Bank, Cascade Bank, and First Sound Bank.
and from the Everett Herald story:
“It’s fair to say all builders and developers are facing pressures in this market, although every company’s business model is different,” said Mike Pattison of the Master Builders Association of King and Snohomish Counties
I wonder which title insurance companies are on the hook for any outstanding mechanics liens?