As part of the foreclosure, iStar was awarded judgments against Scharf and Eistenstadt, as well as investors Kevin and Donal O'Sullivan, who co-founded Manhattan-based Time Square Construction & Development.
Analysts say there are other extended stay hotel chains that are interested in acquiring the property.
"Assuming they don't want to hold onto it, they're going to sell it to another extended-stay operator," said Ben Thypin, senior analyst at Real Capital Analytics.
Read More: http://therealdeal.com/newyork/articles/istar-and-jay-sugarman-wins-foreclosure-case-against-esplanade-capital-at-47-east-34th-street
But it’s too early to say for sure what impact an iStar bankruptcy might have.
“Any decisions would need to be approved by a bankruptcy court,” said Ben Thypin, an analyst at Real Capital Analytics. “It delays the resolution.”
Read More: http://www.crainsnewyork.com/article/20100922/REAL_ESTATE/100929938
“IStar grew as the markets shot up and concentrated in asset classes that are particularly cyclical such as hotels and construction,” said Ben Thypin, an analyst at Real Capital Analytics Inc. in New York. “Their fortunes are closely tied to the market and their future is now uncertain.”
Bankruptcy is one option the company is weighing. It is also considering a proposal to extend maturities on its debt as well as a potential exchange offer, according to two people familiar with the situation.
Read More: http://www.businessweek.com/news/2010-09-21/istar-said-to-weigh-pre-packaged-bankruptcy-filing.html
Ben Thypin, senior market analyst at Real Capital Analytics, said the company cannot continue to go down the same road, and he expects iStar to push more deals like the sale of the corporate net-lease properties.
"I would expect them to do more asset sales to free up capital," said Thypin. "If they can sell some of those non-performing loans they can redeploy that capital into something more productive."
Read More: http://therealdeal.com/newyork/articles/istar-narrows-losses-but-still-struggles-with-portfolio
Ben Carlos Thypin
I am currently the co-founder of Quantierra, the world's first data driven real estate brokerage and investment manager. In my former life as Director of Market Analysis at Real Capital Analytics, I worked with press outlets large and small to provide them with great data and insightful commentary. Here are some of the results of this collaboration. For the rest, please check out the News Archive.
Progress Group LLC
Copyright © 2016