PCV/ST loses another case - $200 million on the line

Deal Junkie brought our attention to the fact that PCV/ST just lost a case in appellate court that could cost them $200 million that would go to roughly 3,000 tenants who received illegal rent increases.

The case revolves around the fact that PCV/ST received a tax break through the J-51 tax program, which allows breaks for renovations on rent-regulated apartments and encourages capital improvements by tenants as well. The NYTimes implies that the outlook is bleak for the owners.

Riverton defaulting

Riverton's foreclosure is today. It seems that the mezz lender (CBRE) is going to take a turn at the helm to see if they can make it profitable after taking out the current equity holder (Stellar).

Reuters

Fitch

It's just the most obvious rent-control flip problem on the radar. There are several others I've written about previously. Jeff Bernstein details some of the new rent control laws in the pipeline that are going to further exacerbate the problem for PE landlords playing the deregulation game The game was mostly played in NYC, but also in San Francisco (The owner of Riverton actually has a similar project in SF) and other cities with rent-regulation.

Either way - you know you have problems when 96-year old women (see image from NYTimes to the right) are gathering in the streets protesting with signs disparaging Private Equity - I mean really...

Isn't it about time for another line - Verizon Center 1095 AoA

Another hat-tip to CalculatedRisk, Verizon Center was in the NYTimes yesterday regarding tenancy issues, namely the largest tenants to sign leases are all backing out. If you stay long enough, you realize this is the Verizon Center (1095 AoA) that EOP sold to Blackstone at the exact pinnacle of the market. It is the largest loan in the GSMS 07-EOP deal.

Image Above: Verizon Center on the left, BOAT on the right


Honestly, by the end of the article I left a little confused by who occupied the building, who had dark space, if there were sublessors, etc. Obviously, though, the new owners were hoping for $130 psf and up for the primo space, and $100 and up for the rest... and they're lucky to get more than $95 for any of it now.