Koll Real Estate Reports Loss of $8.5 Million in 3rd Quarter

Koll Real Estate Group Inc., the developer that owns the controversial Bolsa Chica wetlands project, reported its losses nearly doubled in the third quarter on a sharp drop in revenue.

The company blamed its losses on slumping land values in Southern California, lower home sales at a development in New Hampshire and interest expenses on $173 million in bonds that Koll sold to pay operating expenses.

Koll lost $8.5 million in the third quarter, or 18 cents per share, compared with a loss of $4.4 million, or 10 cents per share, in the same period last year. Revenue dropped 19% to $6.8 million from $8.4 million.

For the past nine months, the company lost $16.9 million, up from a loss of $12.9 million a year ago. Still, revenue was up to $18.9 million compared to $16.6 million during the same time last year.

Slumping sales at the company’s Wentworth by the Sea project in New Hampshire contributed to the losses, not the Bolsa Chica project, the company said. Koll sold the New Hampshire project Nov. 2, after the quarter ended, absorbing a $4.1-million loss. Koll still is trying to sell a marina there.

About 75% of the company’s assets are tied up in Bolsa Chica near Huntington Beach, where Koll wants to build 3,300 homes. A proposal was slated to go before the California Coastal Commission Thursday, but Orange County officials requested a delay.

“I’ve learned [this project] is not something we can count on,” said Raymond J. Pacini, Koll Real Estate Group’s chief financial officer. “It’s hard to predict what will happen.”

Koll’s stock closed unchanged at 34 cents a share on Nasdaq.