Wednesday, April 7, 2010

Race to win "Worst RE Investor" is on...

Maguire, TishmanSpeyer, Lichtenstein/Lightstone are all in the running. I've already invested in a trophy that we're going to send to the finalists...

Lightstone's latest contribution from CRENews:

Lightstone Group said it has stopped making debt-service payments on a total of $563 million of mortgages. That's up $253 million of defaults from a year ago and doesn't count the $7.4 billion of debt on the Extended Stay Hotels chain, which became delinquent last November. The company bought many of its properties near the market's peak, using heavy doses of leverage. ...

Most recently, the company's Prime Group Realty Trust affiliate started talks to give up the Continental Towers, a 932,854-square-foot office building at 1701 Golf Rd. in Rolling Meadows, Ill., which serves as collateral for a $115 million securitized mortgage.

Meanwhile, Lightstone said it expected to lose, likely through foreclosure, four malls that secure $88.8 million of debt, including $73.2 million that was securitized through JPMorgan Chase Commercial Mortgage Securities Trust, 2006-CIBC15. The four properties, Martinsburg Mall with 552,212 sf in Martinsburg, West Va.; the 507,836-sf Shenango Valley Mall in Hermitage, Pa.; the 476,778-sf Mount Berry Square Mall in Rome, Ga., and Bradley Square Mall, with 406,845 sf in Cleveland, Tenn., have been in receivership since last year.

Foreclosure proceedings will also likely begin soon against the two shopping malls, the Macon Mall, with 1.4 million sf in Macon, Ga., and the Burlington Mall, with 419,000sf in Burlington, N.C., that serve as collateral for $164.6 million of debt, including $137.7 million that was securitized through Wachovia Bank Commercial Mortgage Trust, 2005-C20. Wachovia owns a $17.3 million mezzanine loan, while Presidential Realty Trust owns a $9.5 million loan.

Lightstone also said it will lose to two regional malls in Lake Jackson, Texas, and Shawnee, Okla., to foreclosure. The $47.2 million of debt, including $7.7 million of mezzanine debt, on the properties matures in January. The Texas property was scheduled for a foreclosure sale last week.

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