According to a press release concerning the deal, due diligence is complete and funding secured through a nationally recognized financial institution. The plan is to start infrastructure work and construction as soon as the land sale is finalized. The property has been "in transition" since fourth quarter 2006, according to the release.
The Buller Family of Evangeline Parish owns the land, which has been the subject of controversy and lawsuits during the past year. As of early December 2006, Cal-Bay had been working with the owners to try to resolve some of the legal and debt issues.
Once it is officially launched, the project will be Cal-Bay's largest single-development acquisition. "We fully expect that this will create a substantial new asset base for the company, investors and shareholders," William Sickert, Cal-Bay's vice president, says in the release. "This is an important step in the structuring of Cal-Bay to place it into a position to be able to grow its portfolio of assets into the future. Our shareholders can look forward to more announcements in the coming months regarding our commitment to increasing shareholder value as a result of our continued efforts." Calls to Cal-Bay were not returned by press time.
In late 2005, Cal-Bay reorganized to focus on residential and mixed-use developments. It has land holdings and projects in Florida, Nevada, Texas, Utah and its home state, including real estate along Ninth Street in San Francisco.
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