Focus Property Group announced this week it has begun discussions with lenders to restructure its debt obligations in the midst of a major real estate slowdown.

In September 2006 Focus Group signed a development agreement with Nye County to build up to 5,800 homes on 900 acres on the southeast side of Pahrump Valley around Manse Road and Highway 160 at about the time the real estate market in Southern Nevada began to soften.

The company expected to begin building infrastructure at the site this year with homes possibly going up in 2009, but last week officials said the project will be a year behind schedule due to the market slowdown.

Focus Group owns 2,500 acres in Pahrump, including the Pahrump Dairy property and the Desert Trails subdivision in northern Pahrump Valley.

The restructuring is being sought to strengthen the company's financial position.

"Focus Property Group remains financially viable and will continue its operations while seeking to strengthen its liquidity," said John Ritter, chairman and chief executive officer of the company in a written statement. But he added, "The real estate market and lending conditions continue to deteriorate causing land sales to slow significantly.

"Liquidity in all aspects of the real estate industry is extremely limited and within recent weeks the worldwide credit crisis has begun to negatively affect our potential multi-family land buyers. Like many others, we are working to restructure our debt and have begun those discussions with our lenders."

Focus retained the financial advisory services of the Blackstone Group, described by the company as one of the largest and most respected firms on Wall Street.

"Those companies that face the market realities head on will be the ones that survive, and that is what Focus is doing," said Darrin Badger, Focus director of acquisitions. "We firmly believe in the long-term viability and strength of the Las Vegas market. We believe in our projects and are committed to them."

The Las Vegas Review-Journal reported Tuesday the company didn't make the February interest payments on $500 million in loans secured by 4,800 acres in Las Vegas, Pahrump and Victorville, Calif.

Over its 20-year history, total company transactions have exceeded $6 billion.

The company's current projects total more than 14,500 acres in Las Vegas and throughout the Southwest. The company's portfolio includes approximately 30,000 residential lots along with commercial and mixed-use property.