Towers developer defaults on loan [Southern California]
Developer John Saca Wednesday said he has defaulted on a $22 million loan he used to buy the downtown land where he broke ground last year for two 53-story condominium and hotel towers.
The default — the first step in a foreclosure — doesn’t necessarily mean the development is dead. Rather, it’s a public exposure of the months-long private struggle between Saca and his equity partner in the Towers, the giant California Public Employees’ Retirement System — CalPERS.
Construction on the prominent site at Third Street and Capitol Mall stopped in January, leaving a hole in the ground, studded with piles, a few blocks down from the Capitol.