LV housing development seeks bankruptcy protection

A Las Vegas partnership with a 40-acre residential development project has filed for Chapter 11 bankruptcy protection.

The Sanctuary L.P., a real estate investment partnership, filed the petition in U.S. Bankruptcy Court in Las Vegas.

A Chapter 11 bankruptcy is a reorganization filing that allows a company to remain in operation while its finances are restructured. However, an attorney for the partnership said the partnership is not operating and Bank of America pulled construction financing from the project a year ago.

Attorney Jim Greene said the Sanctuary project, at Spring Mountain Road between Buffalo and Durango roads, was envisioned having 150 condominiums and 150 patio homes at buildout.

When construction shut down, about 14 units, some condos and some homes, were completed and are occupied. The partnership continues to maintain the common areas of the development.

Greene, of Kolesar and Leatham, said the bank foreclosed on the property and the bankruptcy action was filed to stay the foreclosure.

The partnership is now seeking a buyer for the project or an alternative plan to be filed with the court.

The primary equity security holder in the partnership is the Robert V. Jones Corp. Stephen DiAngelo is the partnership's president.

The Sanctuary, whose 3275 S. Jones Blvd No. 105 address is the same as Robert V. Jones, lists assets of $25 million and liabilities of $13.1 million in its filing before Judge Clive Jones.

In the filing, Bank of America is listed as a creditor with a claim of $8 million and other creditors have claims totalling $4.6 million. There are additional unsecured claims.

archive