Multifamily Developer Fairfield Files for Bankruptcy

Privately held multifamily real estate developer Fairfield Residential filed for Chapter 11 bankruptcy, the San Diego-based company said in an announcement on its Web site. The company said it reached an agreement with its major creditors for the “framework of a consensual plan of reorganization.” A new operating company was formed that will allow Fairfield to continue to operate its property and asset management, construction services and general partner functions. The new operating company has the ability to raise capital. “Through our productive discussions over the past year, we have reached agreements with our lender groups that will allow us to continue to provide property management services, complete our construction projects and preserve value for our creditors,” president and CEO Christopher Hashioka said. The filing includes Fairfield and 14 subsidiaries the company controls. Assets not transferred to the operating company will be transferred to a liquidation trust that will “serve to maximize creditor recoveries,” the company said. “Ultimately, we believe our plan will enable us 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,” Hashioka added. Fairfield develops and manages mixed-use, transit-oriented, luxury and university student multifamily real estate properties. The bankruptcy was filed in the US Bankruptcy Court for the District of Delaware. Write to Austin Kilgore.

Most Popular Articles

3d rendering of a row of luxury townhouses along a street

Log In

Forgot Password?

Don't have an account? Please