Wednesday, June 20, 2012

Savoy Park purportedly sold at no loss

Bloomberg reported (sorry no link) that a fund jointly started by Citigroup and L&M Development Partners bought the loan for "more than $210 million, the outstanding balance on the senior mortgage, satisfying the loan", but no additional details. The senior is in CSMC 2007-C1 and constitutes 7.08% of the collateral. Unlike some rent-control flips (i.e. PCV/ST), this is actually paying towards the A1A tranche, which is probably held by Freddie (although that is a complete guess).

The A2 is the current pay for the rest of the pool, and a small piece was on a BWIC yesterday. 13mm+ of the A3 was being offered at a 103 handle last week.

This was one of the rent control "let's kick out the rent control tenants and replace them with market-payers" projects that failed miserably. Vantage and Area Property Partners were the sellers.

We've previously discussed Savoy Park (fka Delano Village) here.


crabsofsteel said...

This was a "group 2" loan, in other words directed to pay the A1A. Hats off to LNR for the positive resolution, if indeed the sale closes. I wonder if FH provided new financing in order to pay themselves off at par.

crabsofsteel said...

It turns out that the mezz note holder negotiated a 24% B-note which for all intents and purposes is a loss which is not realized. Proving that this is indeed one of the worst deals ever.