by Calculated Risk on 4/25/2008 11:30:00 PM

From the WSJ: Calpers-Linked Land Partnership Gets Default Notice

A large California land partnership involving one of the largest U.S. pension funds has received a notice of default on a $1 billion loan after failing to meet certain terms of its lenders.

LandSource Communities Development LLC, a partnership that involves the California Public Employees' Retirement System, received the default notice Tuesday, amid talks to restructure $1.24 billion of debt. The partnership ... owns 15,000 acres in Southern California ...

LandSource's trouble followed mounting stress at two large joint ventures in Las Vegas ... One partner in these ventures said Friday that it is unlikely that it will meet its obligations to the deals. The partner, home builder Kimball Hill Homes, announced Wednesday that it had filed for Chapter 11 bankruptcy protection.

Here come the defaults and builder bankruptcies.

UPDATE: Remember this photo from January 1, 2008? Anyone think housing bubble?

Click on photo for larger image.

This is a photo taken at the Sacramento Airport by Itamar