02/22/10 4:49pm

Did Matthew Dilick, managing partner of the partnership that owns the 7.68-acre site of the former Wilshire Village Apartments, really refer to the long-term tenants of the long-neglected property at the corner of West Alabama and Dunlavy — many of whom had lived in their apartments and paid rent for decades before they were evicted last year — as “squatters”?

In a February 1st affidavit he provided to the 133rd District Court in hopes it might help forestall Wedge Real Estate Finance from foreclosing on the property, Dilick states that “the Plaintiff [Alabama & Dunlavy Ltd., of which Dilick is the general partner] expended considerable time and expense in evicting squatters on the Property.” This just a page or so after declaring his qualifications: “The Plaintiff and/or limited partners of the Plaintiff have owned this Property for over 50 years.”

Gosh, maybe there’s a bit of confusion here? Maybe the “squatters” Dilick is referring to weren’t the actual long-term rent-paying Wilshire Village residents, but some other people he found hiding out in the complex who didn’t have authorization to be there from “the Plaintiff and/or limited partners of the Plaintiff”?

Uh . . . no. By “squatters,” Dilick clearly means Wilshire Village’s long-term residents. The ones he sent eviction notices to; the ones he addressed as “reported occupants” in the release forms he asked them to sign. Otherwise, why should it have taken “considerable time and expense” for Dilick to evict them? How about just . . . “shoo!”?

Neatly left out of the affidavit: The apparent ongoing conflicts Dilick had with Jay Cohen, the sole owner of the property for the bulk of those 50 years. Until they were evicted, the tenants paid their rent to him every month. What’s Cohen’s role?

A person familiar with the situation writes in:

CONTINUE READING THIS STORY

02/19/10 12:29pm

COMMENT OF THE DAY: THE WILSHIRE VILLAGE CAPER “Cohen is a limited partner and Dilick is the general partner. That helps explain why last February Dilick was telling people they were evicted and Cohen was telling them they could stay. Dilick is the GP and gets to call the shots. Who knows how or for how much Dilick became the GP (remember the rumors of tax delinquencies and Cohen seeking a bailout a few years back?) but I do recall Dilick surfacing in 2006 with his plan for putting a high rise there. That’s also the same time he started taking out loans on the property. So, my theory is that Dilick acquires his position as part of deal to help Cohen pay his taxes while maintaining partial ownership, uses the property as a piggy bank, comes to realize his development plans are going nowhere and he can’t find a buyer, can’t pay his loans because he couldn’t sell the property or make it profitable enough to cover his loans, defaults on his $13 million in loans, and tries every trick in the book to find a buyer and avoid foreclosure (including taking affirmative steps toward marketing the property, such as demolition, in an effort to satisfy lenders that money is on the way).” [Cap’n McBarnacle, commenting on Comment of the Day: The Ghost of Wilshire Village]

02/17/10 6:03pm

River Oaks Examiner reporter Mike Reed makes a valiant stab at deciphering the latest twists in the ongoing legal battle between the owner of the 7.68-acre site at the corner of West Alabama and Dunlavy where the Wilshire Village Apartments stood until last summer and Wedge Real Estate Finance, the lender that’s been trying since then to foreclose on the property. All that time, Matthew Dilick, the managing partner of property owner Alabama & Dunlavy Ltd., has been using a portfolio of delaying tactics to forestall foreclosure — hoping to sell or refinance the property before it’s taken from him and “two unnamed limited partners.”

According to Wedge, a Feb. 2 foreclosure sale marked the fourth month in a row such a sale had been scheduled, only to be halted by court actions.

Conspicuous among the court documents was a check for $1 million from Tour Partners Ltd., of Spring, Texas, to Wedge, dated Jan. 29 with “Alabama Dunlavy funding” written on it. The address on the check matches that of the Augusta Pines Golf Club.

The president of Tour Funding, Dennis Wilkerson, who signed the check, did not return calls from the Examiner. Neither did attorneys for either party in the lawsuit and foreclosure proceedings.

However, a few pieces of the puzzle were available through court documents:

Negotiation to lease the property for use as an H-E-B grocery store have been conducted by a “purchaser” identified as R.H. Abercrombie.

Photo: Swamplot inbox

02/10/10 11:18am

WILSHIRE VILLAGE OWNERS SAY NEVERMIND ABOUT THAT LAWSUIT Those plot twists just keep twisting! The owners of the former Wilshire Village Apartments at the corner of West Alabama and Dunlavy have dropped the lawsuit they filed at the beginning of this month — the one that claimed their about-to-foreclose lender, Wedge Real Estate Finance, interfered with the owners’ attempts to sell the now-vacant 7.68-acre property. Why? Explains a source: “Whether that is because the claim became moot, or was settled, is unknown.” Of course, they can always refile later! [Swamplot inbox; previously on Swamplot]

02/09/10 6:28pm

Wilshire Village rubberneckers: Pull on over; you are in for quite a treat! The gift that keeps on giving — the tragicomedy of real estate errors at the corner of West Alabama and Dunlavy in Montrose — has come through with another rich round of jaw-dropping twists. It’s up to us to recount and gawk.

We’re still combing through documents filed in the recent lawsuit for more goodies. But a reader who’s a few steps ahead of us has dug into them already and found these gems:

The property has been appraised at $26.8 million. Alabama & Dunlavy (“the partnership”) claim that they were jerked around by Wedge [Real Estate Finance, LLC] as follows:

At the instruction of Wedge, the partnership demolished the buildings on the property. They did this in an effort to prepare the site for development and increase its value by “millions of dollars.” Wedge demanded that this be done because Wedge purchased the Amegy $10 million loan, held the $3 million Wedge loan, and wanted to foreclose. Wedge allegedly stated that if the partnership demolished the buildings and increased the value of the property, Wedge would work with the partnership to avoid foreclosure.

So, the partnership – at great expense – “evicted squatters” and demolished the buildings. But, alas, Wedge decided to foreclose on the partnership and also seize $1,000,000 the partnership held in an amegy account that the partnership planned to use to help fund development.

Among the juicy tidbits…

What? There’s more!?

CONTINUE READING THIS STORY

02/09/10 2:57pm

Swamplot is hearing a couple of unconfirmed items about Wilshire Village, the 7.68-acre site at the corner of West Alabama and Dunlavy that’s sat vacant since the 70-year-old yellow-brick garden apartment buildings long left to decay on the site were cleared of their pesky tenants and torn down last year.

First comes a source telling us that on February 2nd the property was somehow foreclosed on — despite the fact that the the owner of the property, an entity called Alabama & Dunlavy Ltd., declared bankruptcy back in November for the apparent express purpose of avoiding such an event.

The next item is even more fun: There’s a lawsuit!

CONTINUE READING THIS STORY

02/04/10 11:13am

Private security guards were stationed outside the premises of the St. Agnes Missionary Baptist Church south of the Loop yesterday, and an attorney for the bank that owns the property confirms to Fox 26 reporter Isiah Carey that the church has closed. The guards were originally under orders from Herring Bank not to allow anyone to enter or remove any furniture or equipment from the church building off Scott St. near Sims Bayou. However, bank attorney Dwight Jefferson told Carey late last night that

church workers have been given approval by the bank to remove certain personal items and belongings from the building. Just to make sure that’s all they take security guards outside the building are also video taping all activities.

What’s all the fuss?

CONTINUE READING THIS STORY

01/06/10 11:44am

Real estate agent Sandra Gunn informs us that the Montage, the second glass Almeda St. tower across from Hermann Park, was foreclosed on yesterday. Originally named Mosaic to match its adjacent twin directly to the north, the Montage has been a rental property since it was completed.

Almost exactly a year ago, the developer of both buildings — a limited partnership between Phillips Development & Realty and Florida Capital Real Estate Group — declared bankruptcy in order to avoid foreclosure on the Mosaic, which at the time was officially a condominium tower. And Florida Capital’s chief operating officer expressed hope that the Montage’s separate $71 million loan with Corus Bankshares could be renegotiated.

CONTINUE READING THIS STORY

11/20/09 8:04am

Swamplot’s chart-wielding analyst is back with a few comments on the Houston Association of Realtors’ latest report and media push:

Median and average home sales prices fell $7,200 from the prior month. This was including increased activity to get the $8,000 home buyer tax credit in under the wire! Now it is not fair to compare month to month numbers as seasonal factors are working against the housing market this month.

So we get some good spin from the realtors: “Home prices up 5%” “Sales up 13.8%” …this maps directly over to the mainstream press with no research: “Home sales rise for second month,” “Home prices up 5%,” “Sales up 13.8%” Homeowners in this town should be proud that such a hardworking PR machine still gins out great product!

Why would you call those year-over-year increases spin?

The realtors get to make a press release every month and every month something is a “record” and the press is under deadlines and it gets copied in verbatim. This is home prices up 5% and sales up 13.8% from HURRICANE IKE with no caveat in the headline going out to 200,000 print readers and as many web readers!  Not bad for a days work.

Oh, yeah. Forgot about that whole Ike thing. So what’s the market looking like really?

CONTINUE READING THIS STORY

11/05/09 12:23pm

DILICK: PAY NO ATTENTION TO CHAPTER 11 A well-timed bankruptcy filing earlier this week by the entity that owns Wilshire Village did in fact prevent the almost-8-acre vacated property at West Alabama and Dunlavy from foreclosure: Matt Dilick, whose name is listed on the Secretary of State’s web site under registered agent for Alabama & Dunlavy Ltd., said his role is that of development manager. His company, Commerce Equities, ‘is proceeding with its development plans on the property and continues to market the property,’ Dilick said. He recently told me that the property was being offered for sale, but there was a chance he’d still build something on the land.” [Prime Property; previously on Swamplot]

10/30/09 2:52pm

By popular demand — and in hopes that even more exciting or sordid detail might be gleaned from the legalese therein — we’re making available the trustee’s sale notices for Wilshire Village that were sent to Swamplot yesterday. The notices describe the foreclosure peril faced by Alabama & Dunlavy Ltd., the limited partnership apparently controlled by Matthew Dilick of Commerce Equities. That partnership owns the 7.68-acre now-vacant property at the corner of West Alabama and Dunlavy.

Here they are:

Think there’s more — or less — to these documents than meets the eye? Find any clues, factoids, or muck hidden between the lines? Think any of it helps explain the bizarre sequence of events that’s taken place at Wilshire Village over the last few years? Let us know!

Photo of Sign at Wilshire Village, 1701 West Alabama St.: Swamplot inbox

10/29/09 5:36pm

COMMENT OF THE DAY: SWEET ASS WILSHIRE VILLAGE PARK “Some quick math… 7.68 acres = 334,541 SF. Amegy loan = $10,742,000 = 32.11 PSF. Wedge loan = $3,000,000 = 8.97 PSF. Total loans = $41.08 PSF. It seems to me that the dirt should be worth a lot more than $41 PSF. . . . Amegy doesn’t appear to have a lot of risk of loss in the deal. . . . It’s clear they’ve decided to force the owners hand rather than sit back and let the owners try to sell for max $$$, which ain’t easy in this market. A BK by the owner will only delay the process for so long. Amegy obviously wants their cash back. Even without a foreclosure, it seems that this parcel is going to trade hands soon. Somebody needs to round up some cash real quick and buy this prime piece of dirt and turn it [into a] sweet ass park.” [Bernard, commenting on Surprise! Wilshire Village Facing Foreclosure]

10/29/09 1:34pm

The Wilshire Village soap opera continues: A source sends Swamplot two trustee’s sale notices for the now-demolished 7.68-acre apartment complex at the corner of W. Alabama and Dunlavy.

How deep into it is the owner? There’s a first lien of $10,742,000 to Amegy Bank, now “wholly due and payable”! That lien dates from January 31, 2006 — the same date, according to HCAD, that the owner, a limited partnership named Alabama & Dunlavy Ltd., took over the property.

The second notice documents problems with Alabama & Dunlavy Ltd.’s separate mezzanine financing with Wedge Real Estate, in the amount of $3 million. That separate promissory note appears to date from May 30th of 2008. Both trustee’s sale notices are dated earlier this month.

Our source comments:

It is rather interesting that Wedge Holdings is the mezz lender, with Wedge being Mayor Bill White’s former company. I feel certain that Matt [Dilick] will avert foreclosure by filing bankruptcy, if he has not already done so.

Oh but if if if foreclosure somehow isn’t averted, where and when might eager Swamplotters be able to snap up this fine scraped property?

CONTINUE READING THIS STORY

10/23/09 12:22pm

With its most recent achievements, the Mosaic earns its place in Houston’s spec-development record books: Last month the 29-story condo tower near Hermann Park — wedged between Almeda and 288 — scored the loan-default trifecta, having notched a bankruptcy, mass foreclosures, and an attendant bank failure to its credit all within a single calendar year.

Chicago’s Corus Bankshares, which held a $71 million loan for the Mosaic, foreclosed on all 271 unsold units (out of 394 total in the building) in September, just days before the bank itself was seized by the FDIC. A few weeks later, the federal agency sold 40 percent of the bank’s real estate loans to a team of private-equity firms calling itself Northwest Investments and led by Starwood Capital Group — for 60 cents on the dollar.

Any further fun at the Mosaic will be courtesy of the FDIC, reports Nancy Sarnoff:

CONTINUE READING THIS STORY

10/20/09 5:32pm

HAR is out with its September home-sales figures, giving Swamplot’s spreadsheet-side correspondent a chance to eulogize the spring-summer selling season:

Home prices and volumes are flying south for the winter. With this volume downturn for the year, we have most likely seen the highs and sales volumes will now complete their third year of contraction. Prices were down 2-3% in the month, depending on whether you follow the median price or the average price. Pending sales are well below sales for the month, suggesting a further seasonal contraction in October.

This month featured an upturn in foreclosure sales as a percentage of the total. Foreclosure sales were 18.6% up from 16.7% the prior month. Luckily, foreclosure sales are still way down from the 32% peak in January.

But aren’t all those foreclosures going away soon?

CONTINUE READING THIS STORY