Regulators Put a Damper on Big Real Estate Deal : Development: Officials are objecting to the financing arrangements for Landmark Land Co.’s plan to sell $967 million worth of its well-known resort properties.

Landmark Land Co. said late Monday that the deal to sell its major resort properties to Orange County developer Barry G. Hon for $967 million is in danger of falling through because banking regulators object to how the sale is being financed.

Carmel-based Landmark, a leading developer of resort and golf course properties, said that regulators from the Office of Thrift Supervision have objected to the “credit concentration aspect” of the deal.

Though company officials and regulators were not available to elaborate, regulators apparently are objecting to the fact that a savings and loan subsidiary of Landmark Land, New Orleans-based Oak Tree Savings, was to finance the sale completely. The deal was announced only three weeks ago.

Terms of the sale called for Hon to put up $200 million, with Oak Tree Savings to finance the remaining amount.

The deal was to take place in two stages and be completed by next year.

Included in the sale are several well-known resorts in the Palm Springs area, including Mission Hills Country Club, PGA West and La Quinta Golf & Tennis Club.

In all, 19 golf courses and four resort hotels are to be sold.

Oak Tree Savings owns the properties now, but it is being forced to sell as part of the S&L; industry bailout legislation last year that forced thrifts to get rid of their direct investments in real estate.

In a terse statement, Landmark Land said it is trying to refinance the deal “so as to remove the (regulatory) objection.”

Landmark said the deal will be canceled if the problem cannot be resolved.

Hon is an increasingly high profile developer in Southern California.

His projects include the 2,750-acre Foothill Ranch, a master-planned community in south Orange County, and a proposed 850-acre development in Rancho Palos Verdes that would include a 450-acre Ritz Carlton Hotel and two golf courses.

Hon could not be reached for comment.

Trading in Landmark Land’s stock on the American Stock Exchange was suspended Monday pending the announcement.

Times Staff Writer James S. Granelli in Orange County contributed to this story.