Quote of the Day
“I would never deny we all got greedy. Everyone was setting records. Nobody was there to take away the punch bowl.” – Merced, California developer Bernie Glieberman. He was selling houses for $300,000. That means a buyer would have needed a household income of about $100,000 to comfortably make the payments. But Merced’s per capita income of $23,864 ranks among the lowest for metropolitan areas in the country. (NY Times, Aug. 23)
Commercial Real Estate News
Theater Owner Faces Foreclosure. Oregon: “Geiger Investments, the local investment group that owns the historic McDonald Theatre building in downtown Eugene, once again faces the specter of foreclosure. Its mortgage lender, SPCP Group, filed a foreclosure lawsuit on Thursday in Lane County Circuit Court… alleging that Geiger Investments received rent from tenants in July and August, but refused to turn over that money to SPCP, or make required payments under terms of the loan. SPCP is requesting a judgment of $1.6 million, plus late fees and $38,545 in interest, and that a receiver be appointed to protect the rent payments and property.” (Register Guard, Aug. 23)
Commercial Sales Outpace Residential For Cape Auctioneers. Massachusetts: “As the number of home foreclosures increases so does the frequency of auctions to sell the generally bank-owned properties. But for one Cape Cod auction business, success isn't coming from foreclosures, which represent about 5% of their business, as much as it is from increasing numbers of residential and commercial auctions... Only 10 years ago, Justin Manning, president of JJ Manning Auctioneers in Yarmouthport, said his company saw about 70% residential properties to 30% commercial in its business breakdown. But over the last few years, those numbers have switched to 60% commercial and 40% residential.” (New England Business Bulletin, Aug. 22)
Sunset Whitney Owner Faces Foreclosure On Part Of Golf Course. California: “A St. Louis bank is foreclosing on part of the Sunset Whitney Country Club in Rocklin, creating uncertainty for the 45-year-old private club. Developer John Thomas, founder of Regent Asset Management Group LLC is being sued by First Banks Inc., which says Thomas is delinquent on a $4 million loan on the golf course he bought in 2004... The bank has already taken the Sheraton Hotel on Stockton’s waterfront from Regent Asset Management. The company completed the $61 million hotel-condo project in December; seven months later, First Banks foreclosed on the property.” (Sacramento Business Journal, Aug. 22)
Cupertino Square To Go On The Auction Block. California: “Cupertino Square, formerly known as Vallco Fashion Park, will be on the auction block in front of a downtown courthouse on Sept. 10, barring any last-minute compromise between the mall and lender Gramercy Warehouse Funding I LLC. Gramercy said in an Aug. 7 notice of sale, or foreclosure, that Cupertino Square owes it and its lending partner, United Commercial Bank, an estimated $121 million. That includes principal, advances, fees and interest from a $195M loan for construction at the 32-year-old mall, which has been trying to reinvent itself with a new name, a new look and new tenants since 2007.” (San Jose Mercury News, Aug. 20)
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