Banning Lewis Ranch owner unaffected by problems of sister company, official says

The developer of the massive Banning Lewis Ranch that makes up most of Colorado Springs' east side says it's unaffected by the problems of a sister company in California, which is facing a foreclosure sale on a ritzy, oceanside resort.

The St. Regis Monarch Beach Resort in southern California is scheduled for a foreclosure auction July 14 after its owners defaulted on $70 million in financing, according to the Orange County Register.

The resort's owner, the Register says, is a limited partnership affiliated with Makar Properties of Newport Beach. Banning Lewis Ranch Management Co., which is developing 21,400 acres of the ranch, was created by Makar and Capital Pacific Holdings Inc.; Capital Pacific bought the ranch in 2001. Real estate companies frequently create multiple entities to develop projects.

"It wouldn't have any impact because they are two separate companies," Shannon Cook, marketing vice president for Banning Lewis Ranch Management, said of the foreclosure auction. "One company has nothing to do with the other. "

Since late 2007, home building on the ranch has taken place southeast of Woodmen and Marksheffel roads, where 108 families live and another 25 homes are in various stages of construction, Cook said. About 90 percent of the subdivision's amenities are completed, including a recreation center, parks and trails.

Development of five more subdivisions has been delayed because of the nation's housing slump, Cook said. Also, Banning Lewis Ranch Management has cut staff by 25 percent over the past year in the Springs and California, she said.