Sunday, July 26, 2009

Jersey Mayors, Rabbi's, Stung in Graft Probe -- CMBS Link

We all saw the news stories last week about the New Jersey Mayors and Rabbis being perp walked over their involvement in a huge fraud indictment, but our favorite media circus outlets failed to make the connection to CMBS. The shyster behind all of this was none other than Solomon Dwek, the Rabbi who built a real estate empire with funds directed through religious connections only to blow his wad on horrible investments that would have failed either way, ultimately swindling whatever proceeds he could get his hands on.

If you've just joined us in the CMBS world, you probably haven't heard of him. His cookie crumbled back in 2006 and assets were already being auctioned off by the time the next scandal, Michael B. Smuck (MBS Properties).

All of these have already completed the workout period with a weighted average loss severity of 63%:

Deal Name Loan Name Orig. Balance Loss Loss Severity
CSFB 2001-CK3 French Quarters Apartments $ 12,100,000 $ 9,555,744 79.0%
DLJCM 1999-CG1 Becker Village Mall $ 11,344,000 $10,984,663 96.8%
DLJCM 1999-CG1 Marycrest Shopping Center (3) $ 7,000,000 $ 3,027,912 43.3%
DLJCM 1999-CG1 Tiffany Square $ 11,250,000 $ 277,172 2.5%
DLJCM 1999-CG2 211 South Gulph Road $ 10,850,000 $ 5,732,768 52.8%
DLJCM 1999-CG2 Fashion Outlet Center $ 8,650,000 $ 7,995,489 92.4%
DLJCM 1999-CG2 Highland Falls Apartments $ 21,300,000 $16,824,596 79.0%
HFCMC 2000-P1 Mission Centre $ 5,125,000 $ 820,526 16.0%

Also, pretty certain there is no relation to Joseph Dwek, the legitimate NY-based real estate investor. The thought crossed my mind, but all of his loans are current, which is not how the shyster Dwek does business.

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