Monday, December 14, 2009

Fairfield Residential files for Chapter 11 protection

San Diego company builds in Uptown, other D-FW locations
An apartment developer with several projects in the Dallas area has filed for bankruptcy.

Fairfield Residential LLC filed for Chapter 11 protection from its creditors on Sunday.

“Although the relatively strong demand for multifamily rental units during this recession has allowed our businesses to continue to perform well, the unprecedented collapse of the U.S. real estate and capital markets has made it difficult, if not impossible, for Fairfield to continue without restructuring its financial obligations,” Fairfield CEO Christopher Hashioka said.

The builder is based in San Diego and has major operations in Dallas.

Fairfield said on its Web site that it plans “conduct its business operations in the ordinary course” while it seeks to restructure. The company said it has already reached a tentative reorganization agreement with “significant lender groups.”

Fairfield is asking a Delaware bankruptcy court to allow it to keep “it’s existing infrastructure in a new operating company.”

“Fairfield expects to emerge from this process and maximize value for all of our stakeholders by creating a stronger go-forward operating platform and continuing to be an active player in the multifamily sector,” the company statement said.

Fairfield said it plans to liquidate some assets through a trust.

The company has been a big player in Dallas’ Uptown district, where it developed several projects. It is currently building hundreds of apartments in the Village at Fairview complex on U.S. Highway 75 in Allen.

But Fairfield has already canceled some Dallas-area projects, including a development planned on Lovers Lane east of North Central Expressway.

In September, Fairfield surrendered ownership of the 13-acre Signature Pointe property to lender Compass Bank.