Thursday, October 25, 2012

Servicers Unite

Starwood is buying LNR for an undisclosed sum with 3 commas:
Barry Sternlicht's Starwood Capital Group has agreed to buy LNR Property LLC, a large player in the distressed-commercial-property market, for more than $1 billion, according to two people knowledgeable of the deal.

and, Ocwen won the bankruptcy bid for ResCap:
Ocwen will take over ResCap's business (subject to the pending approval), which includes the rights to serve nearly 2.4 million mortgages with an outstanding value of $374 billion. The company faced a serious competition from Nationstar Mortgage Holdings Inc. ( NSM ) at the ResCap bankruptcy auction in New York. Nationstar acted as the stalking horse bidder for the auction. For this, Ocwen will pay Nationstar a break-up fee of $24 million, which was included in its final bid amount.

Higher foreclosure rates coming to an RMBS near you.

Tuesday, October 23, 2012

Outlet Malls Galore!

My wife briefly entered the commercial real estate section of the local business news when she discovered that Tanger Outlets was building an outlet mall just a few short miles from our house! The only good news that I could garner was that I might be able to sit at home while she shops instead of grudgingly going with her and sitting on couches that are for sale in the stores.

Before the day was over, we discovered that Premium Outlets is coming too! Joy! Pure Joy! There is a substantial probability that there will be weekends that I may have the entire house to myself.

From CoStar.

I also secretly hope this leads to a large butt shaped water tower that is meant to look like a piece of fruit, similar to Gaffney SC - currently the closest location for Outlet-shopping fulfillment.

Monday, October 22, 2012

Stuy Town Tenant Group cuts out the middle man

The Stuyvesant Town-Peter Cooper Village Tenants Association tenant group wants to cut out the Special and deal directly with bondholders. Here is the letter to tenants, and here is the letter to CW Capital, the Special.

The group, which has been working with Toronto-based Brookfield Asset Management Inc. (BAM/A) on a plan to convert apartments into condominiums and pay off bondholders, said that CWCapital refuses to consider it. “It has thus far been unwilling to work directly with us and to share the information necessary for us to formalize a bid in advance of opening up the property to a formal sale process,” the association wrote. “CWCapital’s overall response to our attempts to engage it has been to stall and delay.”
Although some saw this as a negative, it clearly shows there is a bid for the property that could result in a $0 loss to the Trust. The lawyers are definitely taking their pound (or ton in this case) of flesh first though.

Friday, October 12, 2012

Who wants to contribute?

It's painfully apparent that we've gotten pretty busy lately and are posting less. Although we hope that posts will pick up again in a few weeks, it seems like a good time to ask if anyone else would like to be a contributor. The pay is $0. Shoot me an email at if interested.

Wednesday, October 3, 2012

GSMS 2007-GG10 REO bucket jumps to mid teens

Nomura noted earlier today that the 470.0mm Two California Plaza loan went REO on October 1. This was just another overleveraged CA office property brought to you by Maguire, via MPG. Nomura's looking for a good 1/3rd loss on this loan.