Wells Fargo Stalls While Developers Line up to Buy Tralee Project
Located at the corner of Dublin Boulevard and Dougherty Road in Dublin, CA, Tralee Village is a stunning retail and residential mixed-use infill project that combines timeless architecture with the ultimate in accessibility and convenience. While most of the retail space at Tralee Village has been leased out, nearly all of the 233 residential units sit vacant. The project’s developer, Pinn Brothers, defaulted on its loan, and lender Wells Fargo has assumed ownership of the Shops at Tralee and the unsold condos and townhomes.
More than ten developers have reportedly expressed interest in purchasing Tralee Village. Most of the interested developers are hoping to change Tralee Village into an apartment complex for now. Once the market improves, the developer can then convert the for-rent units back to for-sale units.
The main obstacle to moving forward at the Tralee Village is that Wells Fargo may have not fully foreclosed on this troubled project. As a result of Wells Fargo’s reluctance to complete the foreclosure process, whoever buys the Tralee Village will be obligated to pay off all the outstanding tax and vendor liens against the property. In addition, the Tralee project is just one of Wells Fargo’s many commercial properties that have defaulted or gone into foreclosure. Wells Fargo simply may not have the bandwidth and staff necessary to sell off the Tralee Village at this time.
Wells Fargo may also be delaying the sale of the Tralee Village and other similar commercial projects to make its finances look rosier than they actually are to investors and bank regulators. This strategic stalling means Wells Fargo can postpone the significant write-off that will reduce its earnings and reserves. By keeping projects like Tralee Village off its books in the growing shadow inventory of delinquent and repossessed commercial properties, Wells Fargo gets to keep its stock price up and lend more money at the expense of the properties’ surrounding communities.
Once the 233 residential units at the Tralee Village are completely occupied, Dublin will realize the dream of a beautiful mixed-use project at the gateway to the Dougherty Valley. The fact that more than ten developers have expressed interest to buy means positive progress is just a matter of time. “Eventually the issues will be resolved and Tralee will have residents occupy it. It will be a vibrant mixed-use center,” said Linda Maurer, Dublin’s Economic Development Director.
11:49 AM on August 31st, 2010
Hmm, seems like a lot of conjecture to me. Did you even talk to Wells Fargo? Or are you making this up as you go? Fact is, you really have no idea why the property isn’t moving yet and as much as that may frustrate you, let’s not play the big bad bank card unless you know the facts. Thanks.
1:50 PM on August 31st, 2010
Nothing related to the comments. I just want to say that. This picture does not seems appropriate for this blog. I could not sleep last night, so I decided to log on to this website. I did get scared by the picture. I know that you may want to create an impact on the issue. Please don’t post this kind of pic next time if you take my opinion.
Thanks,
2:09 PM on August 31st, 2010
I agree. Not exactly the image I want burned into my brain.
11:46 PM on September 1st, 2010
I agree..please take this picture off..
11:56 AM on September 2nd, 2010
This picture looks like something you’d see on, “A Haunting.” Looks like an evil entity.
12:25 PM on September 2nd, 2010
Hi Spooked – it wasn’t our intention to imply that Wells Fargo is an evil entity.
Thx, John Z.
12:13 PM on October 6th, 2010
That’s a disgusting and horrible picture to have on this blog. Please use more discretion in the future.
8:28 AM on September 1st, 2010
Yes, Wells Fargo got their ‘share’ of the TARP money. Fact is, they were forced to take it. They refused and were told they could not refuse. If you do some basic research, you’ll find this is fact. Look into it and get back to me on it.
They have since paid back the TARP money while giving the government hefty interest payments too. If you look at the big banks that took the TARP money, all of us have paid it back with interest. Uncle Sam has even put a good deal of interest in his pockets because of it…meanwhile, the ignorant lay man thinks his tax money went to ‘bail out’ the big banks and he’s lost it. Wrong. It’s sad how a little misunderstanding can go so far.
And by the way, I’m not from Wells Fargo.
9:35 AM on September 1st, 2010
Dear Wells Fargo Representative,
You may want to read your comment more carefully before proclaiming that you are not from Wells Fargo. The Joes on Main Street feel just terrible that folks like you on Wall Street were “forced” to take TARP money. Boo Hoo.
8:37 AM on September 1st, 2010
Oh and by the way, Wells Fargo is in the middle of a huge merger with Wachovia right now. Does Wells Fargo really own the property or is it a Wachovia property that is now under Wells that hasn’t made the transition yet? This could very well be the case. Trust me, Wells has a large allowance for loan / lease losses. If it made sense, they’d foreclose and write this off. It’s asinine to think that holding onto this property actually looks better on a statement of some sort. Either it’s accounted for as an asset or a loss, either way, it’s account for and doesn’t change anything. Whoever wrote this article obviously has no idea how accounting works.
And what good does it do Wells Fargo to ‘hurt small business’? Why would a company hurt their main customer intentionally?
9:30 AM on September 1st, 2010
“Why would a company hurt their main customer intentionally?”
When it suits your bottom line, Wells Fargo.
8:39 AM on September 1st, 2010
John, it’s not Halloween yet. Contain yourself!!
9:06 AM on September 2nd, 2010
Dear Joe on Main Street,
Is that Main Street, DisneyLand, CA? Because you are so delusional that’s probably where you are from. Just because I know some people that work for Wells Fargo and know a few things does not mean I am from Wells Fargo or represent them in any way. But you can continue to believe I work for them if you’d like if it makes you happy.
If you are upset Wells Fargo had to take the TARP money, take it up with the crappy government you elected including the Mafioso Ben Bernanke and Henry Paulson. They told Wells Fargo in a Mafioso style move they had to take the TARP money or the regulators were going to come down on them hard. Last I checked, forcing someone to take a loan and payout high interest on it is a form of extortion. But our lovely government didn’t want the other banks to look bad. Boo hoo to that.
Wells Fargo donates more money, volunteers more hours and gives back to more communities than any other financial services company in the entire Bay Area. They are one of the only banks around these days that makes money off traditional banking and is not heavily involved in risky trading like other banks. The same trading that almost caused those other banks to go under. While everything was crumbling, Wells Fargo was able to buy Wachovia and save the FDIC from the certain destruction they would have faced trying to back up all the failed Wachovia accounts.
But you don’t want to believe that do you? You just want to think that Wells Fargo is a big bad corporation that takes advantage of the little man right? Please. Time to go back to Main Street DisneyLand and take another ride on the Tea Cups…
9:57 AM on November 1st, 2010
Maybe you can tell us what’s in Wells Fargo’s $1 Trillion in off balance sheet loans? If they were performing why not hold them on the balance sheet? Also what about their Home Equity portfolio are they still holding those near par? You do realize if the first is underwater than the second is a zero. Thank god Congress and Wall Street thugged FASB into changing the accounting rules to kick the can down the road a little further.
https://www.wellsfargo.com/downloads/pdf/invest_relations/2Q10_10Q.pdf
Page 90
10:19 AM on September 2nd, 2010
Dear WF Bandits:
You stated -
“Why would a company hurt their main customer intentionally?”
When it suits your bottom line, Wells Fargo.
This makes no sense whatsoever. Hurting the customer to suit a company’s bottom line may help them temporarily, but is not sustainable. In the banking environment it’s downright suicidal. Banks make money off fees and interest revenue. It’s all those pennys they’re counting. That is why bank stock doesn’t go up very much, why if you buy bank stock, you only do it for the dividends and why banks are not highly profitable. This isn’t Google my friend. Do some reasearch on banks. If they can’t help the customer, they won’t stay in business long. It’s in their best interest to keep the customer as happy as possible for as long as possible.
3:10 PM on September 3rd, 2010
John, another good sign for Dublin.
http://www.insidebayarea.com/business/ci_15985561
4:28 PM on September 3rd, 2010
Hi Anonymous – this is awesome news. We’re planning to provide more info about Sprout’s soon.
Thx, John Z.
6:30 AM on September 16th, 2010
John Z–I disagree with your statement. Wells Fargo is an evil entity.
6:31 AM on September 16th, 2010
John Z, I think that you’re wrong. Wells Fargo IS an evil entity.
8:01 AM on September 16th, 2010
Hi Marprelate – you may have a point there. ;-p
Thx, John Z.
1:36 PM on October 20th, 2010
Hmm, I agree with the user above John. You should really just stick to the facts of development instead of speculation on motive. I enjoy the updates and news, not the ‘facts’ you think you may have and editorialize on. This isn’t the SF Comical after all.
10:13 AM on September 16th, 2010
A Haunting – \Hidden Terror\ episode:
Lady asks: \Are you sorry for scaring me?\
Entity: \Noooooo!!!!!!!!!!\
http://www.dailymotion.com/video/x3jpp9_a-haunting-hidden-terror-5-final_webcam
1:04 PM on October 8th, 2010
John,
You really should shy away from attempts at journalism. You always seem to be looking for some hidden agenda behind everything and encourage negative feedback, but then when the facts come out you end up being wrong almost every time. You should be embarrassed by the comments some of your biggest fans make. They dont do a very good job of validating your point since they generally lack intelligence and are only good at spitting out vitriol while you sit back playing the ringleader. I dont see how this benefits our community in any way.
Stick to puff pieces that benefit local businesses and the community. That is what you do best.
6:27 PM on October 8th, 2010
Hi Anonymous – I appreciate that you recognize the fact that we work hard to promote local businesses and community groups.
All of our articles are based on facts and are sourced from folks that have first-hand knowledge of the subject matter.
Take care,
John Z.
12:06 PM on August 31st, 2010
Congratulations, John Z. You got someone from Wells Fargo to comment! Yes, Wells Fargo got their share of the TARP money, and now they are hurting small businesses owners like those at the Tralee by holding up development. Just follow the money:
http://www.cbsnews.com/stories/2009/02/09/eveningnews/main4788018.shtml