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Brightwater builder lost $44.7 million last year
March 27th, 2009, 3:00 am · 7 Comments · posted by Marilyn Kalfus, real estate reporter
California Coastal Communities, builder of the Brightwater home development overlooking Bolsa Chica in Huntington Beach, lost $44.7 million in 2008, including $19.8 million in the fourth quarter, the company reports. 
Their gross operating profit of $5.7 million in the fourth quarter was offset by a $4.6 million loss on the company’s joint venture in Oxnard, as well as expenses and falling values of company assets.
The company reported that asset values fell by $900,000 and that “net operating expenses” that cut into profits totaled $2.2 million.
Raymond J. Pacini, CEO of the company, said:
“Conditions in the housing and credit markets continued to be challenging throughout 2008, and deteriorated further during the fourth quarter. While prospective homebuyers remain hesitant in this unstable economic environment, we are encouraged by increased traffic at our Brightwater project since February.
“We are hopeful that the federal government’s initiatives to stabilize the credit markets and restore confidence in the economy will be effective, and that recently enacted federal and state tax credits for homebuyers, along with the Federal Reserve’s recently announced programs to purchase long-term Treasury securities and additional mortgage-backed securities guaranteed by Fannie Mae and Freddie Mac will reduce mortgage rates and stimulate future home sales.”
On December 31, the company sold 17 model homes at Brightwater to a third-party investor $25 million ($22 million cash; $2 million deferred; $500,000 to convert models to sell at the project’s conclusion.)
California Coastal used $20.9 million of the proceeds to repay loans that would have been due in 2009.
The company’s report stated:
“We believe the current conditions could continue, and potentially worsen during 2009 and perhaps beyond, and we expect that our operations may continue to sustain losses until the homebuilding industry and economy as a whole begin to rebound.”
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Where did they lose it? I hope they find it.
I think they lost it when they decided their ceo’s and management needed more perks…don’t worry, they’ll find it again..they’ll just request help as part of a bail out..don’t worry, if you didn’t buy home because you couldn’t afford it, thank god we have the government to take it from us thru taxes so those unscupulous (??) people can continue living their highlife (on the taxpayers back)..we ARE ALL homeowners now, we just can’t live in them!
I find it interesting that their stock is up considerably on this news. And, I don’t think anyone who can truly afford one of the Brightwater houses would care about the tax credit, if they even qualify for it.
This means savvy buyers will be getting bargains. Losers will be priced out forever now the new mortgage modification scam is kicking up the latest OC bubble!
LOL!! Owned by home! That is the best name ever! I agree if ever there was a time people could make a terrible decision to buy a home it is now, they will get owned by their home purchase. So yes if you want to be stuck in a house and ruined financially and getting owned by your home….go buy now knife catchers!
So, how many homes have they sold over there at Brightwater anyway? I know they sold the models to survive - not a good sign.
Brightwater developers have really BAD KARMA…it will bite them in the butt over and over. They should never have built there. Greedy, greedy!
But I thought people were showing up in droves to buy these places……Oh, they just showed up in droves, apparently they forgot about the buying part.
I walk through that track on the weekends and it’s a ghost town compared to their opening weekend.
Imagine how much worse financially they’d be if they didn’t sell those 17 discounted homes at the end of ‘08.