This must be the week of bad news.
Kimball Hill Homes, the developer of both Parkside of Old Town and Park Boulevard, has delayed filing its 2007 fiscal report and expects to absorb a heavy financial hit from the weakening market, according to an article in Crain’s.
Kimball Hill, the largest homebuilder based in the Chicago area, lost $75.1 million in the first nine months of the year, including $133.7 million in impairment charges. Like other big homebuilders, the company has suffered amid declining home sales in key markets such as California and Las Vegas.
Moody’s Investors Service recently cut its ratings on Kimball Hill’s debt, including $203 million in senior subordinated notes. The notes closed Wednesday at 31 cents on the dollar, up two cents from their closing price Friday. They hit a low of 24 cents in early December.
Kimball’s in-city projects are deep into construction, and they both involve CHA elements. When Yo checked out Parkside of Old Town in May 2007, the development was about 75 percent sold. A month before that, we reported that the first phase of Park Boulevard was 50 percent sold.