SANTA ROSA – Pinnacle Homes, a longtime Santa Rosa homebuilder, has shuttered its doors after two properties totaling $3.865 million fell out of Chapter 11 bankruptcy reorganization and were taken back by San Rafael-based Westamerica Bank.
The two project partnerships managed by Pinnacle Homes of Santa Rosa filed for Chapter 11 reorganization on Feb. 23 to delay foreclosure, one in Sebastopol and one in Ukiah.
According to bankruptcy filings, Pinnacle Development No. 22 L.P. filed its Chapter 11 on the Sebastopol property the day before the bank was to complete foreclosure, which consists of 11 single family dwellings with a value in of about $2.47 million, of which $2.4 million was owed to the bank. Additionally, $29,200 was owed to the Sonoma County Tax Collector.
The Ukiah property has a value of $1.39 million and Westamerica is owed $1.95 million. Pinnacle Development No. 19 LP also filed the day before the bank foreclosed.
The responsible party on the filings of both is listed as Richard Dowd, vice president of Pinnacle Homes.
According to Craig Lawson, president of Pinnacle Homes, the company, which the two men started in 1993, closed its doors at the end of May, the latest casualty in a construction devastated by the recession.
Bankruptcy attorney Michael Fallon of Santa Rosa represented Pinnacle in both cases.
The requests for dismissal in both stated there was no point in keeping the case in Chapter 11 because there was no conceivable way for Pinnacle to reorganize, develop the properties or find financing.