Sudden Valley is the name of the postponed subdivision being built by the Bluth Company. In 2006 it was sold by the newly formed Austero Bluth Company to the Michael B. Company and completed, only to lay vacant until 2012 when G.O.B. filled the homes with registered sex offenders, which have since left.
Building halted when George Bluth was incarcerated, so only one Model Home was built. ("Pilot") The Bluth Company, led by Michael tried to complete building the neighborhood but funding was often an issue. At one point in time, the company tried to relaunch the development by building a second model home, which was a sham and fell apart in front of the press. ("The One Where They Build a House")
The name "Sudden Valley" was never met with pleasant reactions. George Michael once described it as sounding like a salad dressing that he didn't want to eat. The name was somewhat of a harbinger, as the model home did begin to sink into the ground due to a shoddy foundation. ("Switch Hitter") Due to shoddy construction, the only unit in Sudden Valley suffered from a sudden sink hole. ("Righteous Brothers")
The neighborhood also had a mole problem that became especially a problem when Michael tried to trick a group of Japanese investors. ("Mr. F")
Sale and completion
When George and Lucille received a government stimulus package and didn't use the money to finish Sudden Valley Michael declared yet again that he was out of the family. He sold his Bluth Company shares to Lucille Austero who became the majority shareholder and changed the company to the Austero Bluth Company. She sold Michael Sudden Valley for his Michael B. Company. He completed development just before the 2007 California real estate market collapse. The houses did not sell and sat vacant for many years. ("Flight of the Phoenix")
In 2012, Michael was tasked by his father to get a job for G.O.B.. Michael asked him to sell the Sudden Valley homes, little knowing that Maeby was secretly living there at the time. A recently released Tobias told G.O.B. that he needed a home far from schools and playgrounds because he was a registered sex offender, so G.O.B. sold him the model home. ("Smashed") G.O.B. then filled the rest of the homes with other sex offenders. ("A New Attitude") George Michael bought one of the remaining homes from G.O.B., hoping to impress his father. ("Blockheads")
A map of Sudden Valley shows its location northeast of Mission Viejo and Las Flores, putting approximately in the location of Rancho Santa Margarita, Orange County, California. ("A New Attitude")
Michael: What do you think of when you hear the name, "Sudden Valley"?
George Michael: Salad dressing, I think. But for some reason I don't want to eat it.
From "Switch Hitter"