Newnan developer loses California project
Newnan developer Stan Thomas has suffered another setback, losing control of a massive mixed-use project on land in Sacramento, Calif., that he bought for about $75 million in 2006.
The railyard site is three times the size of Atlantic Station and plans called for 12,000 housing units, hotels and offices. The project attracted millions of federal and state dollars for infrastructure improvements. But disbursement of some of the money was on hold while Thomas feuded with lender Inland American Real Estate Trust, the Sacramento Bee reported.
Last Friday, the Chicago-based company foreclosed on the property and now owns it.
Thomas, reached by phone Thursday, said he couldn’t discuss the Sacramento deal due to a confidentiality agreement with Inland.
Inland spokesman Matt Tramel also wouldn't answer questions, but he issued a statement saying, “Inland American recognizes that tough economic times have affected Thomas Enterprises and appreciates their willingness to work towards an amicable resolution that will allow the railyards project to move forward.”
Thomas's firm will consult with Inland during the transition and has the option to buy back interest in the project over the next 18 months.
Thomas, a prolific developer of metro Atlanta shopping centers, had graduated to bigger projects around the country during the real estate boom. But since the bust that followed he has struggled to hold together his web of real estate deals and land holdings.
He filed for bankruptcy on several projects, sold off millions of dollars in construction equipment, and has sued his major lenders.
Thomas said he is pushing on. "I have to stay positive and fired up so I can get up and go every day.”
