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Banned
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Originally Posted by james t kirk
Sounds like the proverbial race to the bottom.
I've never seen anything like this.
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Nothing is going to stop the domino effect.....here is a taste:
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http://www.bloomberg.com/apps/news?p...zQI&refer=news
Two Las Vegas Housing Projects Have Missed Payments, WSJ Says
By Nicholas Larkin
March 15 (Bloomberg) -- Two Las Vegas housing projects have each missed an interest payment in recent weeks on about $765 million of debt and are holding talks with lenders, the Wall Street Journal reported, citing development partner Focus Property Group.
The Inspirada and Kyle Canyon Gateway ventures, which include Toll Brothers Inc., KB Home and Lennar Corp., have received default notices, the newspaper said, citing Focus Chief Executive Officer John Ritter.
The 2,000-acre Inspirada project was expected to develop as many as 13,500 homes over the next seven years, though only about 162 homes have been sold so far, the Journal cited Ritter as saying. He now expects the project to last between 10 and 15 years because of a severe housing downturn in Las Vegas, the Journal said.
The ventures are holding talks with principal lenders JPMorgan Chase & Co. and Wachovia Corp. about restructuring the loan terms, the newspaper said, citing Ritter. Both banks declined to comment, the Journal said.
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Quote:
http://online.wsj.com/article/SB1205...googlenews_wsj
Foreclosure on Las Vegas Casino to Begin
By JENNIFER S. FORSYTH
March 15, 2008; Page B6
The developer of the Cosmopolitan Resort Casino, a $3.9 billion condo-hotel complex on the Las Vegas Strip, has been notified by its primary lender that it will begin foreclosure proceedings.
The move by Deutsche Bank AG, the lender on a $760 million senior loan, comes after the developer, Ian Bruce Eichner, wasn't able to finalize a deal for new financing amid the credit crunch. Mr. Eichner in late February cut a tentative deal with two of his other lenders, Global Hyatt Corp. and New York hedge fund Marathon Asset Management, for a possible rescue of the twin-tower project. A default on the loan in January triggered automatic defaults on an additional $175 million in loans.
If foreclosure is completed, the project could prove to be one of the first big development projects in the country to be victimized for the continuing difficulties of securing new debt in a business that is heavily dependent on it. Even developer Harry Macklowe, a New York real-estate mogul who is swimming in debt after earlier this year being unable to pay off loans on seven Manhattan skyscrapers that he bought for $7 billion, has managed to work out extensions with his lenders and has so far avoided foreclosure.
The problems with the Cosmopolitan come as Las Vegas is in the midst of an unprecedented construction boom that is affecting nearly every corner of the Strip, the main tourist thoroughfare.
Marathon and Hyatt had agreed in February to contribute substantial cash to the deal in exchange for a major equity stake in the project. The team went back to Deutsche Bank in an effort to get new funding. However, an agreement wasn't struck before Thursday, when Deutsche Bank notified the lenders that foreclosure would commence.
"Deutsche Bank informed Marathon that they intend to continue to pursue their remedies and proceed with a foreclosure on the property," a Marathon spokesman said Friday. "Notwithstanding these proceedings, Marathon and Deutsche Bank continue to be actively engaged in discussions regarding a recapitalization of the project."
Mr. Eichner said Deutsche Bank lenders told him over the phone of their plans, but as of Friday afternoon he hadn't received written notification. Work is proceeding on the project, Mr. Eichner said.
Mr. Eichner and the Marathon spokesman blamed the project's problems on the credit-market meltdown and a jump in construction costs since building began in 2005. Mr. Eichner said buyer interest in the condos themselves had been strong. Before the residential-mortgage crisis hit the Las Vegas market, the project sold 83% of the condo units, with buyers putting down 20% nonrefundable deposits on sales totaling $1.35 billion, he said.
"Debt for any large construction project is largely unavailable, and even for what is available, the cost of construction financing right now is so high that it makes it difficult for an investor to obtain the returns to justify the equity investment," Mr. Eichner said.
Hyatt officials previously said they would manage and brand the 3,000 room condo and hotel complex, which is going up adjacent to the Bellagio. A Hyatt spokeswoman didn't return phone calls seeking comment.
The Marathon spokesman said the firm has assessed the project's continued viability and believes it can be successfully completed. A Deutsche Bank spokesman declined to comment.
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Emory Univ. officials are puzzled.....
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http://www.emorywheel.com/detail.php?n=25244
Donor Falls Short on Pledge
By Kate Borger
Posted: 03/07/2008
A $5 million pledge to the Center for Ethics may not be collected in full, delaying other campus construction.
John Wieland, chair and chief creative officer of John Wieland Homes and Neighborhoods, pledged a $5 million naming gift last year to help build the new theology building under construction behind Bishops Hall, where the Center for Ethics will occupy the ground floor.
Executive Vice President for Academic Affairs and Provost Earl Lewis wrote in an e-mail to the Wheel that Wieland “made a substantial partial payment on his pledge but was not in a position to complete the pledge on schedule with the completion of the building project.”
Lewis would not disclose why the money was withheld. The $37 million building is scheduled for completion in October 2009. Although the University will search for additional donations, Lewis said in an interview that Emory has struggled to find other sources to complete the project, and thus, other projects, which were not disclosed, will be deferred. The construction for the new theology building and for the Center forEthics, however, is scheduled to be completed on time.
“The building construction was moving towards its final phases, and we needed to complete the building,” Lewis said.
<h3>While financial difficulties are not unheard of, Lewis said, delays in the fulfillment of pledges are rare.</h3>
“At this point, it’s not clear that [Wieland] will be able to complete [the pledge],” Lewis said. “We hope that either he or someone else will be able to complete it.”
Wieland, who served for eight years as chair of the Advisory Council of the Center for Ethics, did not respond to requests for comment by the Wheel’s press time.
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Last edited by host; 03-16-2008 at 09:38 PM..
Reason: Automerged Doublepost
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