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The Question Is, Will There Be Some Assets For The Victims?

A report from Local Profile on Texas. “Located at Lebanon Road and the Dallas North Tollway, the 175-acre Wade Park development was envisioned as the crown jewel of Frisco’s vaunted ‘5 billion dollar mile.’ Yet instead of that picturesque scenery, Wade Park now resembles a cross between an abandoned dump and a bombed-out shell of a Wild West town. There are no shops, no restaurants, no high-end condos; just a gravel pit and a small smattering of half-finished buildings caked in soot.”

“‘It is a cesspool,’ Frisco’s Kathy Hill told a local news station in September 2020. ‘I’ve been here for over two years, and the only thing that has changed is the hole is only getting deeper and smellier and the weeds are back. We were supposed to have this great development and I thought the value of my home would skyrocket. But, instead, it’s an eyesore.'”

From KXAN in Texas. “The Austin City Council could vote as soon as Thursday to approve three residential towers in the Rainey Street District. ‘Those 440 residences; that’s almost equal to the total number of properties for sale on MLS in a 10-mile radius of this site,’ said the building’s developer, Kevin Burns.”

The South Florida Business Journal. “The developer of the One Thousand Museum luxury condominium tower in Miami could lose its unsold units to a foreclosure lawsuit. Motcomb Estates filed an $82.7 million foreclosure complaint against 1000 Biscayne Tower LLC, along with guarantors 1000 Biscayne Mezz LLC and Gilberto Bomeny. The lawsuit aims to seize the 15 unsold units in the condominium, at 1000 Biscayne Blvd. Prices in the 84-unit building start at $5 million, making it the most expensive condo in Miami’s central business district.”

“According to the complaint, 1000 Biscayne Tower LLC reached three forbearance agreements with its lender between June 2020 and August 2020. The final forbearance agreement stated the loan was due for repayment Oct. 16, 2020. The complaint alleges the borrower failed to repay the loan in full by that date, and currently owes $82.7 million in principal, plus interest and fees.”

The Los Altos Town Crier in California. “Mounting legal action against a Los Altos developer continues to cast doubt on construction of a 196-unit housing development at 5150 El Camino Real. A loan company filed Friday to send the property into receivership, one of many interconnected filings involving Dutchints Development LLC. Dutchints purchased the 3.8-acre 5150 El Camino property for $48 million in 2018. According to court documents, Tashjian told investors the 5150 El Camino property was worth as much as $85 million and that they could expect to earn 50% profit on their investments annually. Investors claim there has been no payout and no movement on the project since approval of the project’s tentative map.”

“Investors claim in court documents that ECR Group LLC became insolvent as early as April 2019 and alleged that Tashjian concealed his financial situation from the group. ‘The question is, will there be some assets for the victims?’ said Los Altos attorney Harry Price, who represents local investors in Dutchints projects.”

The Bold Italic in California. “Over the past year, San Francisco has turned into a full-blown renter’s market. As people made their way out of the city to more spacious pastures, rents began plummeting and many locals (myself included) took advantage of ‘pandemic pricing’ by either moving to a new place with lower rent or negotiating a rent reduction with their landlord. Over the past year, rents in the city have dropped up to 35%. Craigslist and Zillow are filled with $2,200-a-month listings for one-bedrooms and studio apartments dipping well below $1,800.”

“‘$2,200 for a one-bedroom with several gorgeous Victorian rooms and new kitchen appliances two blocks from 24th Street. This seemed unreal to me. Before the pandemic, I wouldn’t know if I could competitively find a place alone without having at least $4,000 a month to spend on rent, so I went for it. I even got a discount of half off on the first month. The landlord frankly seemed desperate to fill the apartment, which had been vacant for some time.’ — Heather.”

From Block Club Chicago in Illinois. “A.M. 1980, a seven-story apartment complex at Milwaukee and Armitage avenues, opened in 2018, around the same time several other similar buildings popped up around the Milwaukee Avenue corridor. Before the pandemic, the 132-unit building was almost at full capacity, leasing agent Douglas Leader said. But as of early March, the building was only 85 percent occupied, which is considered low.”

“For months, the A.M. 1980 developer was offering big concessions, including two and three months free rent, $1,000 Visa gift cards and no move-in fees, Leader said. But the concessions are not unique to this developer or to Logan Square. It’s quite the contrary, Leader said; such incentives are being used by developers and leasing agents across the city during the pandemic to be competitive and to avoid lowering rents.”

“‘It’s pretty much across the city. Some buildings are doing up to four months free. There’s some insane concessions going on,’ he said.”

From WTOP. “The average apartment rent in D.C. is down 13.3% from a year ago, the seventh-sharpest decline among the 100 largest U.S. metro areas. Average rents in Arlington County are down 13%. ‘D.C. continues to be one of the markets with the most significant year-over-year rent drops in the entire country,’ said Rob Warnock at ApartmentList.”

“The largest year-over-year drops in rent have been in the most expensive rental markets, down 26.1% in San Francisco, down 20.8% in New York and down 19.5% in Seattle.”

From the Oregonian. “A decade of rapid apartment construction across Portland is coming to an abrupt halt, with permits for new multifamily projects down an astonishing two-thirds last year. The number of multifamily permits issued for constructions with five or more residential units dropped by two-thirds in Portland last year, with the city issuing permits to build fewer than 1,500 new apartments, according to data. The city had issued developers permits to build an average of 4,600 new units per year in the preceding five years.”

“Other cities saw declines in multifamily permitting activity last year, too, but the drop in Portland was particularly acute. The number of multifamily permits issued declined 42% in Seattle, 26% in Salt Lake City and 23% in Denver, but rose 34% in Austin, 52% in Nashville and 89% in Sacramento, according to preliminary data from the U.S. Department of Housing and Urban Development.”

“A building binge helped moderate Portland rent increases over the last few years. The influx of new units coming on the market, coupled with the fallout from the pandemic, contributed to vacancy rates in Portland rising to 7% last year and 15% downtown, according to CoStar. Many new buildings coming on the market over the last two years have had to offer concessions to attract renters, which have pushed rents down for those buildings. The vacancy rate was 34% for properties built in 2019 and 2020.”

The Commercial Observer on New York. “Extell Development Company, one of the city’s most visible luxury developers, reported a loss of $206 million in 2020, as a result of falling property values, higher financing costs, and the sale of some of its holdings and interests, according to its annual financial report on the Tel Aviv Stock Exchange. While the amount represented the total loss across its properties in the Tel Aviv portfolio, Extell’s share of the loss was $190 million, according to a spokesperson.”

“The loss occurred even as Extell completed its crown jewel, Central Park Tower, the tallest residential building in New York City, and began closing on its 179 ultra-luxury condos early this year, according to the report. Extell also completed a large condo development in Downtown Brooklyn, the 483-unit Brooklyn Point, in 2020 and negotiated significant financing deals across its portfolio, including the recent close of a $146 million inventory loan at The Kent, another condo tower in Brooklyn; a $17 million inventory loan at supertall One57 on Billionaires’ Row; and a $380 million mezzanine loan on Central Park Tower.”

“But as prices fell and sales slowed during the coronavirus pandemic, the expense of maintaining and financing its properties ate away at Extell’s bottom line. Despite the progress at Central Park Tower, Extell is now expecting to make $1 billion less at the property than it did in 2018. It revised down its expected gross profits at the 95-story tower by 17 percent from the estimate in 2019, and more than 60 percent from 2018.”

“Extell also launched leasing for a 441,000-square-foot office building in East Harlem and continued to sell condos across its other projects, such as One Manhattan Square, One57 and The Kent. Sales appear to have picked up in 2021, although a condo at One57 resold at a record 51 percent loss in January, TRD reported.”

This Post Has 86 Comments
  1. ‘I even got a discount of half off on the first month. The landlord frankly seemed desperate to fill the apartment, which had been vacant for some time’

    That’s the spirit Heather! This link has loads of info. These bay aryan landlords are fooked.

  2. ‘one of the city’s most visible luxury developers, reported a loss of $206 million in 2020, as a result of falling property values, higher financing costs, and the sale of some of its holdings and interests, according to its annual financial report on the Tel Aviv Stock Exchange’

    Israeli bagholders take another a$$ pounding. Extell is like a bowling ball going down stairs.

    ‘ negotiated significant financing deals across its portfolio, including the recent close of a $146 million inventory loan at The Kent, another condo tower in Brooklyn; a $17 million inventory loan at supertall One57 on Billionaires’ Row; and a $380 million mezzanine loan on Central Park Tower’

    Inventory loans = fake central bank pesos going to money heaven.

    1. Israel is the place to watch for economic recovery. They negotiated to get the Pfizer vaccine early, and now something like 60% of the population has gotten at least one shot. If there’s going to be a recovery in jobs and apartment rents, it will (or should) happen there first.

      1. There are plenty of countries in full recovery mode that didn’t fall for the lockdown scare or the get everyone vaccinated meme.

        1. Israel probably has the world’s best public health services and medical care. I would trust their data far more than anything coming out of our for-profit “healthcare” industry.

          1. In order to get the vaccine sooner and in sufficient quantities, Israel made a deal with Pfizer: vaccines for data. The deal may have been politically motivated. I wouldn’t trust that data.

          2. Israel’s data would be considered Phase 4 real world evidence used to justify coverage by non-governmental healthcare payers. Both Israel and Pfizer want that data to look good.

          3. According the bed-wetter article in Time Magazine, Israel has hit a soft ceiling at 60% vaccinated. Evidently they have vaccines available(?), but they are running into 40% hesitancy, mostly among young people. 65+ people have been much more willing. So Israel’s case data isn’t going to look very good, but their death data should look better. IIUC, from now on cases will stay steady and then decrease naturally as the unvax just get infected and develop natural immunity.

          4. AFAIK, Pfizer’s stated efficacy does not include the people unable to take the second jab because of their response to the first jab as well as experiences 2 weeks following the second jab. The exclusion of these makes Pfizer efficacy look better than it really is.

  3. ‘Many new buildings coming on the market over the last two years have had to offer concessions to attract renters, which have pushed rents down for those buildings. The vacancy rate was 34% for properties built in 2019 and 2020’

    This is a REIC article, full of dire warnings of shortages, etc, if the guberment doesn’t start throwing around free cheese. You got a glut you dumb bashtards. The Oregonian used to be a pretty good paper about housing, but no more.

    1. “vacancy rates in Portland rising to 7% last year and 15% downtown”

      15% is that a lot?

      Could anyone even imagine paying property taxes to the city of Portland?

      1. 34% in the new lux airboxes. You have to add vacancy revenue lost in the effective rents too. It can quickly jump up to half off or more.

        Half off is unpossible! And the “value” of these white elephants drops in the magic fairy dust of cap rates – exponentially. Leverage is a bitch in reverse.

  4. ‘It’s pretty much across the city. Some buildings are doing up to four months free. There’s some insane concessions going on’

    This is why effective rents are all that matters. So what’s 4 months free mean? Add that on top of the plain Jane rent decline and these guys are bleeding like stuck pigs.

      1. what i was told by an industry guy in Seattle (not sure how accurate it is) — they were able to categorize 2 months of free rent as sales expense (same profit/loss).

        So for more than 2 months, they would have to amortized across the length of the lease. This hurts them when they have to show the historic cash flow to the investors in the REIT.

        1. The developers need a certain percentage of occupancy above an expected price point to hit the original prospectus numbers. In addition to being swamped with an over-supply of condos, many cities are unable to cope with the shear number of homeless dregs sleeping in every doorway of commercial properties in the city’s downtown core. They leave behind drug needles, feces, garbage, etc., and combined with the covid-19 business closures the result is urban blight.

  5. ‘1000 Biscayne Tower LLC reached three forbearance agreements with its lender between June 2020 and August 2020. The final forbearance agreement stated the loan was due for repayment Oct. 16, 2020. The complaint alleges the borrower failed to repay the loan in full by that date, and currently owes $82.7 million’

    But forbearance? Nobody has to pay anything til..mouth hankey! Looks like the can is behind the kickers.

    ‘Tashjian told investors the 5150 El Camino property was worth as much as $85 million and that they could expect to earn 50% profit on their investments annually. Investors claim there has been no payout and no movement on the project since approval of the project’s tentative map’

    Red hotcakes!

    ‘Investors claim in court documents that ECR Group LLC became insolvent as early as April 2019 and alleged that Tashjian concealed his financial situation from the group. ‘The question is, will there be some assets for the victims?’

    Well Harry, they weren’t victims when they were rubbing their greedy paws over that 50% in sweet equity. No soup for you!

  6. ‘Wade Park now resembles a cross between an abandoned dump and a bombed-out shell of a Wild West town. There are no shops, no restaurants, no high-end condos; just a gravel pit and a small smattering of half-finished buildings caked in soot…It is a cesspool…I’ve been here for over two years, and the only thing that has changed is the hole is only getting deeper and smellier and the weeds are back. We were supposed to have this great development and I thought the value of my home would skyrocket. But, instead, it’s an eyesore’

    Frisco is red hotcakes, Kathy with a K. UHS said so.

    1. Frisco is red hotcakes, Kathy with a K. UHS said so.

      On Monday, I posted this comment:
      ————
      Here’s a house that I expect to be a red hotcake: 3/3 rancher on 1.25 acre: Needs paint and a roof but otherwise in good shape. Seems like a great place to w@h 3-4 days/wk, with room for kids and gardens. 4 days on market $370K.
      https://www.zillow.com/homedetails/1005-Muller-Rd-Westminster-MD-21157/36795688_zpid/
      ————-

      Here’s what the listing says today:
      3/23/2021 Pending sale $369,900 $134/sqft
      3/19/2021 Listed for sale $369,900 (+12.1%) $134/sqft

      In other words, red hotcakes. I’ve been saying this for weeks now.

      Where the hotcakes are:
      Easy-fix shacks in the suburbs
      Easy-fix average shacks in the w@h countryside, like the one in Westminster.
      Anything over an acre of land.

      Where the hotcake are NOT:
      Any kind of luxury multi-use PUD (planned urban development), whether Apts or Condoze, like Wade Park
      Any celebrity-priced manse
      Any unfinished spec development
      Downtown anything

      Looks like Americans are discovering their inner Ward Cleaver, or their inner Mother Earth News. So much for owning nothing and being happy, eh Klaus?

      1. In my little burg shacks under under 400K sell fast, in less than a weel. A 600K shack takes a few weeks.

      2. Looks like Americans are discovering their inner Ward Cleaver, or their inner Mother Earth News. So much for owning nothing and being happy, eh Klaus?

        A curious dichotomy. The true wealthy and policy makers own a lot and burn a lot of gas. The concept of everyone else living frugally in tenements, eating crickets and not owning anything is not new. See the Soviets. Human nature doesn’t change, while the systems of distributing purchasing power do. Luxury for me, but not for thee.

    2. Ya – i was personally fooled in 2018 and 2019 when i travelled monthly to Plano and Frisco for work. With Chase, Liberty Mutual, Toyota and others moving there … the future seemed bright and the people were acting like it.

      So there was massive construction of office buildings, higher end shopping centers etc (especially in Plano – Legacy West etc) and a huge amount of luxury apartment complexes and housing subdivisions. Will be interesting to see how it turned out the next time i am there

  7. BAHAHAHAHAHA….

    “and I thought the value of my home would skyrocket. But, instead, it’s an eyesore.”

  8. Washington Post — Biden administration eyes extended ban on renter evictions as stimulus delays, landlord lawsuits loom (3/24/2021):

    “The Biden administration is weighing whether to extend a soon-expiring federal policy that prohibits landlords from evicting their cash-strapped tenants, as the U.S. government seeks to buy more time for an estimated 10 million families who have fallen behind on their rent.

    The extension under discussion could run at least through July, according to two people familiar with the matter who spoke on the condition of anonymity to describe a decision that isn’t yet final. Without it, the federal eviction ban is set to lapse in seven days, opening the door for some Americans to be removed from their homes.”

    https://archive.is/vYUOu

    Does contract law even exist anymore?

    1. That was flushed with the obama bailout of GM with destroying first in line bondholders in favor or the political buddies of the UAW.

      “Does contract law even exist anymore?”

    2. fallen behind on their rent.

      Aren’t these the same people who have been getting $2400/mo extra in unemployment, not to mention sweet cheese payments to their kids? They should have saved that money to pay future rent.
      Oh, right, they want to drag out more and variants to extend this indefinitely, if not cancel rent permanently.

      It wouldn’t surprise me if some of those vaccine refusers are refusing the vaccines purposely just to extend this pandemic to keep the gravy train rolling.

      1. They should have saved that money to pay future rent.

        I’ll bet that they are saving it. But it won’t be for paying past due rent. They’ll probably vine swing when the time comes, just before being evicted.

        1. They should have saved that money to pay future rent.

          I bet a fair number of them are partying down in South Beach. Lots of UE, no rent. Socialism works!/s

          1. I bet a fair number of them are partying down in South Beach.

            Spring break, it isn’t just for students anymore.

  9. “The largest year-over-year drops in rent have been in the most expensive rental markets, down 26.1% in San Francisco, down 20.8% in New York and down 19.5% in Seattle.”

    As usual, San Diego is missing from the list of expensive markets with rent declines.

      1. Remember the Media lies that “Real Estate Always goes up,” around 2005. Than you come to find out that the loans were handed out like toilet paper with rampant fraud taking place.
        Than the fraud got bailed out by the Swamp in Washington DC in the trillions.
        This is when the rule of law and Contract law got thrown under the bus in favor of bailing out the too big to fail.
        The real estate bubble has been re inflated with more loans being backed by Uncle Sam. Liability from vaccines backed by the Gov. Student loans backed by the Gov.
        Since when does industry get to profit, yet throw the risk to the Gov. to this degree. It appears that the 2009 bail outs just set the corrupted Government up to be the pawn for more of the same rigged market making.
        Is Government suppose to be the party that gets stuck with the risk and industry only gets the plus side?
        These are not sustainable systems, and you can only call them looting systems and bubble systems . This is what happens when Big Monopolies become the Puppet masters of the Gov. They control 90 % of the news now .
        And now the insanity of Corporation Monopoly Rule , is upon us like never before.
        And the Monopolies with fake news asserting that over half the Country are insurrectionist and racist is just such a false demonizing of the population that doesn’t want Top Down control by self serving Monopolies , that are essentially screwing up the Country.
        In the final analysis I think they are going to fail, but they could do a lot of damage in the meantime , after this election was stolen to put their Puppets like Biden in.

  10. Im reading the Boulder attack was because the store had the largest kosher food section and kosher bakery, in colorado.

    1. If true, this story needs to get memory holed ASAP.

      Remember how the Boulder shooter was white, for about 16 hours, until Real Journalists were reluctantly forced to reveal his identity?

      1. If true, this story needs to get memory holed ASAP.

        It will be. just like how the story of the unlicensed 9News “bodyguard” who shot an unarmed counter protestor was buried.

        1. It will be. just like how the story of the unlicensed 9News “bodyguard” who shot an unarmed counter protestor was buried

          Has that one gone to trial yet? I know he was out on bail

  11. Plus………..Passover 2021 will begin in the evening of
    Saturday, March 27 and ends in the evening of Sunday, April 4

      1. We all learned in the 2020 “Summer Of Love” what happens to anybody who uses a legally purchased gun to protect their life against violent mobs of feral Burn Loot Murder.

    1. 9th circuit is San Francisco, the Dem’s go-to court for doing an end-run around Congress and the Constitution. Let’s see what the Supremes say. There might still be 5 folks there who know what “bear” means.

    1. another 2% down on the NASDAQ

      Looks like just where it was one month ago, up 600% from 10 years ago. Headed for the moon, with some day to day fluctuations. Not sure where the “burn” would be.

    2. Nasdaq is all tech, all over-valued and all dependent on money printer go brrrrr. DOW has some commodities in it and they’re still pricing in a real recovery.

    1. FBI: More people killed with knives, hammers, clubs and even feet than rifles in 2018

      Posted by: LET Staff|
      October 2, 2019

      It’s the data that the mainstream media tends to bury when it doesn’t fit their agenda.

      According to the FBI, more than five times as many people were killed in 2018 by knives, clubs and other cutting instruments than with rifles.

      The metrics show that there were a total of 1,515 deaths by knives or other cutting instruments last year. Compare that against 297 people killed by rifles.

      It’s a gap that widened significantly over 2017. In that year, the FBI said nearly four times as many people were stabbed to death as killed with rifles. During that year, the number of murders with rifles was around 400.

      It gets better. More than 100 more people were killed with hammers and clubs in 2018 than were killed by rifles. There were 443 people killed with hammers, clubs, or other “blunt objects”.

      We need to point out that the data isn’t just semiautomatic rifles – it’s ALL rifles, including bolt action, pump or lever action rifles as well.

      If you were to contrast the numbers between JUST semiautomatic rifles and knife homicides, the gap would be even larger.

      https://www.lawenforcementtoday.com/fbi-more-people-killed-with-knives-hammers-clubs-and-even-feet-than-rifles-in-2018/

      1. The Second Amendment has nothing to do with hunting animals for food.

        It exists for citizens to resist, and when needed, overthrow tyrannical government.

        P.S. today is Wednesday, March 24th and Joe Biden is not the legitimately elected president of the United States.

  12. It’ll be interesting to see the effects of a broad-based rebound in demand from the covid recovery. Modern monetary policy is very much trickle-down, firehosing cash at the top of society, while pushing debt on the rest. That improves headline indicators but not quality of life for the majority.

    Financial crises, either stock market implosions or debt implosions, are like huge money vacuums, sucking money from outsiders, to insiders. Someone noted that the bailouts had been paid back with interest. Another replied, if it’s such a good idea, we should do it more often then?

    But… if the covid rebound is actually broad-based and finally “lights the fire” of the broader economy, via the real indicators – workforce participation increasing, wages increasing, unemployment dropping – rather than simply a few market indicators indicating policy makers and large donors are doing well – perhaps a lockdown and restart every few years might be the way to go?

    Flight of fancy, all remains to be seen. If it does though… perhaps they shouldn’t be bailing out corrupt and inefficient and downright silly business structures going forward, and letting them collapse.

    1. “…perhaps a lockdown and restart every few years might be the way to go?”

      Yeah, right…maybe even genetically engineer a new pandemic virus to set up another lockdown.

      Sounds reminiscent of the argument about how war is good for the economy.

      https://mises.org/library/broken-window

  13. People in my neck of the woods are tripping over each other to get vaccinated and are complaining on NextDoor that appointments are booked for weeks.

    1. Does that indicate the high cost of mortgage and rent payments are reducing the number of other consumer transactions?

    2. If you look at the 5-YR time frame, you can see that the steep drop started 1Q2020 with the beginning of lockdowns. Should it be that surprising?

      1. Tthe velocity of money has been sinking like a turd in a well for the past five years. The point is that if the economy was sinking pre-COVID, then it won’t improve once we exit lockdown.

        1. You can stuff all the money you want up the banker’s butt, unless someone borrows it, it goes nowhere.

          1. Redpill, sort of. But it’s the banks who aren’t lending out that print money enough. Banks do get the money, but they realized that the general public already has lousy credit score, and the banks may never get their interest OR principle back.

            So instead, banks are lending the money back to the Fed, and the Fed uses the money that they created to buy Treasuries and other debt. The Fed pays a little interest on the money that THEY created (and then borrowed back) to the banks. It’s like a spinning air castle.

  14. Texas homeowners aren’t thrilled about living next to “man camps” being used to house illegal immigrant “youths.”

    EXCLUSIVE: ‘They have doctors and chefs – they’re living better than us!’ Angry Texas residents tell how the Biden administration is housing over 500 migrant youths at an all-inclusive $33m ‘man camp’ just feet away from their homes

    https://www.dailymail.co.uk/news/article-9389205/Angry-Texas-residents-tell-Biden-administration-housing-500-migrants-near-home.html

      1. His handlers will be pumping him full of stimulants and other meds before the conference. They’re probably hoping he doesn’t break out into convulsions in the middle of the conference.

        1. “His handlers will be pumping him full of stimulants and other meds before the conference.”

          Undoubtedly how he got through the debates with President Trump.

        2. Uh oh, he’s starting out with numbers and simple math. That generally doesn’t bode well.

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