Commercial Real Estate Foreclosures
Expert: Look For Commercial Real Estate Crisis This Summer. “Don Boyken, chief executive of Boyken International, a consulting and building project management company: The ups and downs of the residential real estate market foreshadow commercial real estate a year or two later. That's the pattern seen during the past 30 years. “We have found that when the residential market moves, the commercial market moves 12 to 18 months later,” says Boyken… And with the residential market moving down in the past months, Boyken sees all the warning indicators for the commercial market to start going the same way this summer.”
Court Orders Sale Of 100 Block For $4.6 Million. “Wisconsin: The apartment building at 100 N. Main St. could be sold to the minority investors in the property within two weeks, almost 10 months after the bank originally filed foreclosure proceedings. Oshkosh 620 LLC's Gary Wehrley, of Brookfield-based Daymark Real Estate, and Paul Kolaga, of Pewaukee-based AKO Enterprises, bid $4,630,000 for the 62-unit apartment building with 14,000-sf of first-floor commercial space, more than the building's assessed value of $4M. Winnebago County Circuit Judge Barbara Key approved the purchase on March 19.”
Newest Data Show Commercial Slump. Tennessee: “Shelby County had 12 commercial foreclosures in February 2008, up from six in January. Eleven of the 12 foreclosures were on duplex properties, while the other was on a condominium unit.”
Bay Valley Hotel & Resort to Remain Open During Foreclosure. “Michigan: Bay Valley Hotel & Resort in Frankenlust Township is facing foreclosure, but a spokesman for the resort said Friday the business will continue to operate as usual. "They are still open," said James R. Johnson, an Auburn attorney representing Bay Valley, who noted that the hotel was expecting a number of guests over the Easter weekend. Bay Valley is owned by RMC Realty, a Toledo-based company that purchased the 178-acre resort and 18-hole golf complex in 2007. The resort has a 148-room Clarion hotel and employed nearly 100 people last year.”
Related Joins Bidding On Ailing Vegas Project. “Sources: NY developer Related Companies, led by Stephen Ross, has teamed with Starwood Hotels and Resorts Worldwide Inc.'s (HOT) W Hotel group and an unidentified casino operator to try to take over the $3.9 billion financially ailing Cosmopolitan Resort Casino project on the Las Vegas Strip. The project's lender, Deutsche Bank AG, started foreclosure proceedings this month against the developer, Ian Bruce Eichner, on a $760 million loan. An investor group led by private hotel firm Global Hyatt Corp. and New York hedge fund Marathon Capital also wants the Cosmopolitan. The $175M loan [they made] to Mr. Eichner is also in default [but] subordinate to Deutsche Bank's.”
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