According to an AP story, homebuilder KBHome has sued real estate investment firm McFarlane Partners over suspended payments at several Southern California area condominium projects. And to think the building industry used to be somewhat friendly to one another (at least in the press):
Homebuilder KB Home sued real estate investment firm MacFarlane Partners LLC for failing to contribute some $52 million toward the development of three condominium complexes, according to court papers obtained Thursday. MacFarlane and KB Home had agreed to share the construction bill for the complexes in Anaheim, Irvine and the San Fernando Valley, but the investment firm ceased payments in late 2007, leaving the homebuilder to cover the shortfalls, according to the Superior Court lawsuit filed last week.
The lawsuit, which claims MacFarlane and its affiliates failed to honor contractual and fiduciary obligations, lists compensatory damages totaling more than $100 million.
San Francisco-based MacFarlane spokesman Doug Holm did not immediately return a call seeking comment.
KB spokeswoman Lindsay Stephenson said the Los Angeles-based company is working on a strategy to complete the projects, which are in various stages of construction, without MacFarlane as a partner.
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