Friday, October 06, 2006

Real Estate Rocket Out of Fuel?

From the Sacramento Bee:

Hobbled by ongoing pension and toxic cleanup obligations, GenCorp Inc. posted its fifth consecutive quarterly loss on Wednesday but predicted that several new contracts for space exploration could bolster the company's fortunes. However, the Rancho Cordova-based company cautioned that a downturn in the real estate market could delay the development and sale of its extensive property holdings south of Highway 50...

[GenCorp chief executive Terry] Hall was less optimistic, however, about how fast GenCorp could develop more than 20 square miles of real estate the company owns in the Rancho Cordova area. He called the environmental and permitting processes "glacially slow" and said the softening real estate market also could delay development.

Market conditions, he said, recently caused GenCorp to break off negotiations with an unidentified company that was planning to help GenCorp develop acreage for residential and commercial use. "The market has made it much more difficult to find a partner for a joint venture," he said. But he emphasized that the land remains a valuable asset. "We will monetize it when demand is strong and prices are high," he said.

4 comments:

Its Govt Work said...

Yes Aerojet (Gencorp) you thought you were well versed dealing with the government...

NASA and the Pentagon is no match for the County Planning Department, Department of Environmental Review, Fish and Game, Sierra Club, Army Corps or Engineers.

The market will change several times by the time this piece of property gets developed. My unborn grandkids will shop here.

Does anybody understand the similarities in cost between a toilet seat for the military and a developed and approved building lot in California?

We put a moon on the mon in less time!

Anonymous said...

Man on the moon...whooops

Anonymous said...

Good coverage of Sacto flipper Casey Serin on SFGate:

A would-be real estate mogul follows boom tips straight to bust
http://www.sfgate.com/cgi-bin/article.cgi?f=/g/a/2006/10/06/carollloyd.DTL

JR said...

Anon 4:27,

Thanks for the heads up on Casey Serin. There are none so blind as those who will not see. To think his new "exit strategy" is to do more real estate deals indicates to me that it is time for him to learn how to be a tenant....at the Crossbar Apartments in Folsom. What a joke. The whole industry is at fault. I just can not imagine who buys these loans that are built to default. The answer of course, is you and I via the federal govt.