Atlanta developer faces trouble in Sacramento
Stan Thomas, a Newnan developer known for numerous shopping center projects around metro Atlanta, could be on a path to losing control of a massive redevelopment project in Sacramento, Calif., according to the Sacramento Bee.
The newspaper reported that an investor in the project, Chicago-based Inland American Real Estate Trust, has taken initial steps towards foreclosing on the site owned by Thomas Enterprises, after Thomas apparently missed an April 30 loan payment.
However, Thomas told The Atlanta Journal-Constitution, "We've been negotiating with them on extending it. They felt like it was a good negotiating tactic to file a default notice. The reality is that it’s going to be renewed." Thomas told the AJC the loan amount in question is for about $175 million.
He said he was "irritated" by the default notice because it could jeopardize getting federal and state funds, which are a key piece of funding the railyard redevelopment.
The project is a public-private venture to turn a former railyard and Superfund site three times the size of Atlantic Station into a development with 12,000 housing units, hotels and offices. Thomas acquired the property in 2006.
Like many developers, Thomas since then has faced financial setbacks, including lawsuits, delays and foreclosures on other projects.
