MANHATTAN (CN) – JP Morgan Chase Bank sued seven major homebuilders for their failure to complete a $1.3 billion development of 11,500 homes in Henderson, Nev. The bank says the borrowers owe it at least $325 million in loans for the enormous “Inspirada” project, which began in 2003.
In separate federal complaints, the bank sued Alameda Investments; Coleman-Toll LP and Toll Brothers; KB Home Nevada; Focus South Group and John Ritter; Pardee Homes of Nevada and Weyerhaeuser Real Estate Co.; Meritage Homes of Nevada; and Beazer Homes USA.
The enormous project, planned for 2,000 acres, was originally known as South Edge. Henderson, the biggest suburb of Las Vegas, was one of the nation’s fastest-growing cities until the real estate crash.
The bank is represented by Jamie Levitt with Morrison & Foerster.
The bank filed seven similar complaints against the same defendants in Clark County Court, Las Vegas.