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times are wonderful to go long RE

Started by HT1
about 17 years ago
Posts: 396
Member since: Mar 2009
Discussion about
Are you kidding??? Second Budget Hotel Bankruptcy In One Week, CRE Getting Monkeyhammered First it was Extended Stay, which filed for bankruptcy last week (and whose unexpected filing may make life for CMBS participants very complicated as the law of unintended consequences strikes again). Today, it is budget hotel chain Red Roof Inn. The company, which owns 210 hotels, defaulted on $367 million of mortgage debt, has a total of $1.2 billion in total debt, including mezz loans and other notes. The company was purchased a mere 2 years ago by Citigroup (yep, the same phenomenal deal makers who wouldn't know how to find their gluteus maximum with a magnifying glass, bought a 79% stake in yet another toxic piece of garbage) from Accor SA for $1.3 billion.
Response by HT1
about 17 years ago
Posts: 396
Member since: Mar 2009

just to get my point across, here latest statements from as large holder of prime commercial RE in Manhattan - just recently 'aquired':

Deutsche Bank's deal to sell its Manhattan Worldwide Plaza office tower has fallen apart.

The bank notified potential bidders that the property is back up for sale after deciding not to complete a June 3 deal with RCG Longview and George Comfort & Sons, said the people, who declined to be identified because they weren’t authorized to speak publicly.

Deutsche Bank will change the terms of the transaction with the new buyer, the people said. While it will still finance the sale, the bank will NO longer retain an equity stake in the 47-story tower at Eighth Avenue and West 49th Street, the people said. Worldwide Plaza was one of seven Midtown skyscrapers Germany’s biggest bank took possession of 16 months ago when developer Harry Macklowe defaulted on about $7 billion in debt.

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Response by HT1
about 17 years ago
Posts: 396
Member since: Mar 2009

all this will have NO impact on apartment prices?

Dream on

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