"Overvalued" - good point, Oak.
But the fast track units were overpriced from the start because Asbury Partners
( Fishman Brothers, MD Sass, Cherokee, etc.) demanded too much for the
redevelopment rights and other fees.
That set us on an inevitable collision course. They were overpriced even at the
peak of the building craze. How do you hide $100,000/unit for the rights,
$20,000 for infrastructure reimbusement/unit, and 7% on the sales price/unit?
You can't. So you add it to the price of each unit and that's in excess of the
value you're getting and/or the profit the builder is getting. It had to fail.
And they couldn't console themselves with future retail because the partners
secured that, too.
Hovnanian knew it. They backed out because they didn't like "the negotiations".
hmmm. I doubt Kushner paid up on the post-sale considerations to the Partners.
Weren't the Partners suing Kushner over failure to honor their contract?
Now we've got iStar talking to the council, again behind closed doors, and who
knows what kind of strategy they intend to use.
Are there timelines? Deadlines? What do they think of that eyesore on the C-8
lot? When does that get removed? Have they figured Son of C-8 into the criteria
of negative influence on area values? Aren't investors doing that these days?
Why is iStar offering lease agreements instead of sales, when they keep losing
money quarter after quarter? Some free market. What's keeping these guys
artificially afloat?
Maureen
--- In AsburyPark@yahoogroups.com, "oakdorf" <oakd...@...> wrote:
>
>
>
> --- In AsburyPark@yahoogroups.com, "radio881gal" <Restore881FM@> wrote:
> >
> > Oak -
> > What did you mean by what's backing their 'investments'?
> >
>
> I guess the right word here is collateral- when they gave out money for these
> deals in their portfolios - what did they get in return, how was it valued,
> was money fronted for soft development costs (that were spent for planning
> but no real property development etc)
>
> The biggest thing for them and all other developers- how are they carrying
> these properties and how are they valued today - or are they using tomorrows
> projected as built and sold numbers.
>
> If I gave you a $100,000 mortgage for 30 years, I'd want to know that for the
> next 30 years, I have something from you in return that during the next 30
> years, I can easily unload for $100,000 and you paid me with no grief during
> that time (Or as the principal was paid down, at least your payoff was
> covered).
>
> This is the meltdown - loans made on overinflated values determined by over
> zealous buyers, "investors", dreamers, scams, brokers, bankers and appraisers
> (here it comes...):
>
> In the end you can't buy what you can't afford.
>
> that's what my parents told me.
>
> People today are embarrassed to say it to their kids or, for that matter, to
> themselves.
>
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