“If Colony hands over the keys, that would indicate the firm doesn’t think Xanadu is most productive use of their resources despite the significant amount of capital they’ve already committed,” said Ben Thypin, an analyst at Real Capital Analytics Inc. in New York. “That shows it’s uncertain as to when Xanadu will produce income, much less become profitable.”
Read More: http://www.bloomberg.com/news/2010-08-05/barrack-s-colony-capital-may-lose-control-over-xanadu-mall-in-new-jersey.html
Continental Plaza, a three-tower office complex along Route 4 in Hackensack, is among the properties foreclosed on this year. A loan servicer foreclosed on the $88 million commercial mortgage secured by the 650,000-square-foot property in February, according to the state and data compiled by Bloomberg News.
The interest-only mortgage, which was originated in 2004 and did not require payments to pay down the loan's principal, apparently could not be refinanced when it matured in September of last year. The loan servicer and the borrower – a joint venture between Morgan Stanley and Normandy Real Estate Partners of Morristown — apparently could not agree to restructure the debt, said Ben Thypin, a senior market analyst with the real estate research firm Real Capital Analytics.
Continental Plaza was valued at $109 million in 2004, and commercial property values have declined more than 20 percent since then, Thypin said.
"Any loan that they're going to get is going to probably value the property at less than the amount they owe," he said. "That's the fundamental problem here."
A change in ownership appeared likely, he said. "Either the lender is taking it back or someone else is going to buy it," Thypin said.
Thypin added, however, that New Jersey's backlogged court system could extend the foreclosure process and property values could rebound in time for the owners to refinance. (Representatives for Morgan Stanley and Normandy declined to comment.)
Read More: http://www.northjersey.com/news/business/94994129_Unabated_pain_for_borrowers.html
“Why would Stephen Ross be interested? Because a fortune has been put into it already,” said Howard Davidowitz, chairman of Davidowitz and Associates in Manhattan, a national retail consulting and investment firm. “The issue still is that [retail] rents are going down, space is going up, and everyone is going to want a deal. But if anyone can do it, [Ross] can.”
Ben Thypin, a senior market analyst for Real Capital Analytics in New York, echoed the latter point. He added that Related is more likely than Colony to “finish the job” at Xanadu, because Related has more experience in project management and not just real estate ownership.
“[Related] has a lot of experience in mixed-use development,” said Thypin
Read More: http://www.northjersey.com/news/020110_Real_estate_giant_in_talks_to_save_Xanadu.html
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.