Tag: Financing

Demolitions
02/09/10 6:28pm

Wilshire Village Owners: Wedge Made Us Tear Those Buildings Down

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Financing, Foreclosures, Lancaster Place, Neighborhood Disputes
15 Comments

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!?

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Attractions
02/05/10 12:18pm

Dynamo Stadium: What Difference Does the Location Make?

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Bellaire, East Downtown, Financing, Proposed Developments, Quicklink
4 Comments

DYNAMO STADIUM: WHAT DIFFERENCE DOES THE LOCATION MAKE? “Talk to Houston Dynamo CEO Oliver Luck, and you get a much different view of the depth of Bellaire-area stadium proposal by the Midway Companies that’s taken on a life of its own in the past week, largely due to the buzz phrase, ‘privately funded.’ ‘We have not been presented a plan by the Midway Companies,’ Luck said. ‘I can’t say whether there’s “no public money” involved. ‘We (the Dynamo) won’t talk to the city or county about this deal — we have pushed that responsibility to Midway. We know what our conditions are, and basically, it’s replicating the financial structure of the downtown deal. That’s sort of a threshhold question. If they can do that, we’ll go ahead. If they can’t, it won’t happen.’ Under the East Downtown (a district now known as EaDo) deal, the Dynamo would pay about $60 million with the city of Houston and Harris County each guaranteeing about $10 million through a special tax reinvestment district.” [West University Examiner; previously on Swamplot]

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Attractions
01/26/10 4:22pm

What’s the Dynamo Stadium Westpark Option?

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East Downtown, Financing, Proposed Developments
19 Comments

Houston Dynamo fan and attorney Eric Nordstrom — who’s also a supporter of a new East Downtown stadium for the soccer team — writes in with a question:

I appeared at Commissioners’ Court this morning on behalf of the Dynamo Supporters’ Alliance to speak in support of county participation in TIRZ 15, which is the last hurdle to clear before the Houston Dynamo can begin construction of their stadium at the proposed downtown location. As you know, this deal has been held up for quite some time as it works its way through the political process. The Dynamo Supporters’ Alliance is dedicated to keeping this issue on the front-burner with our elected officials, especially now that the smoke has cleared from the municipal elections. It is important to us to get the message out about this project for it truly represents a remarkable commitment by the team to expend $60,000,000 of its own capital . . . Opponents often ask why, if the Dynamo want a stadium, don’t they pay for it themselves. The Supporters’ Alliance is dedicated to communicating the message that that is precisely what the Club is trying to do. If the City and County will fix the roads, we’ll build the house.

However, after my three minutes were up, Commissioner Radack asked if I was aware of a project currently under development by Midway Companies to construct a multi-use facility in Precinct 3 with 100% private financing, “a mile from the Galleria” near Westpark. To be honest, I was not aware of such a project, and though our first choice is the downtown location, I am intrigued by the location Commissioner Radack suggests. I’m wondering if any of your readers out there can fill in the gaps.

Rendering of proposed new Dynamo Stadium at Texas and Dowling, East Downtown: ICON Venue Group

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Commercial Real Estate
01/22/10 9:38am

Skanska Post Oak Tower: We Don’t Need a Bank To Build This

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Financing, Galleria, Highrises, Land Sales, Office Buildings, Proposed Developments
2 Comments

An executive with Skanska USA tells the Houston Business Journal‘s Jennifer Dawson that the American subsidiary of the Swedish project development and construction company will build and finance this new freeway-side Galleria spec office building all by itself. Design work for the 14-story tower and 8-story parking garage, though, was farmed out to Kirksey.

Where will it go? The 2.3-acre former site of Tony’s Ballroom at 3009 Post Oak Blvd., across the street from the Water Wall Park. Metro will likely want a piece of that property too: A thin, mostly triangular sliver along the property’s western edge is needed to accommodate the new Uptown Line set to run down Post Oak.

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Apartments
01/06/10 11:44am

And the Second Tower Too: The Montage Foreclosure

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Bankruptcies, Condos, Financing, Foreclosures, Hermann Park, Highrises
8 Comments

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.

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Financing
12/10/09 9:20am

John Culberson to Metro: Stop This Train!

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Quicklink, Transportation
44 Comments

JOHN CULBERSON TO METRO: STOP THIS TRAIN! After poring through financial documents on the Metro website that the organization’s chairman now says are outdated, Congressman John Culberson announces his opposition to federal funding for the light-rail University Line — because he’s concluded that Metro won’t be able to afford it: “Culberson filed a formal objection with the Federal Transit Authority late Tuesday, ahead of a deadline today for members of Congress to file any concerns. Otherwise the FTA would have given Metro the nod to begin preliminary engineering work on the line. Part of the 10-mile route lies within Culberson’s congressional district. FTA spokesman Paul Griffo said the agency retains the final say. ‘It is not a process that requires explicit congressional approval or disapproval,’ Griffo said. ‘The FTA will keep Mr. Culberson’s concerns in mind, as we do the concerns of all elected officials, as projects advance through our evaluation process.’” [Houston Chronicle; more detail in the River Oaks Examiner]

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Bankruptcies
11/23/09 1:53pm

Comment of the Day: The Royce Builders Legacy

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Comments, Homebuilders, Quicklink
7 Comments

COMMENT OF THE DAY: THE ROYCE BUILDERS LEGACY “I think the real story is all the trades and other businesses who wound up getting stiffed out of tens of thousands of dollars in some cases. Royce was a poorly managed company… especially in its final year. They built an empire building houses on credit and pocketing entirely too much cash. When the loans on new starts stopped, Royce found themselves way over their heads in debt from the thousands of spec homes sitting on the ground. But the cash was in their pockets… so they walked out and left all the trades and homeowners to drown. Anyone ever stop to think how this effected small companies like Conkir Electric or all the painters and sheetrock crews who worked for pennies anyway?” [Former Royce, commenting on A Chance To Relive All the Excitement That Was Royce Builders]

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Commercial Real Estate
11/20/09 2:52pm

The Surrender of Greenway Plaza: Morgan Stanley’s Great Houston Office Building Investment Flop

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Downtown, Galleria, Greenway Plaza, Office Buildings, Real Estate Investing
4 Comments

What do all these Houston office towers have in common?

That’s right — they’re all part of the vast Crescent Real Estate Equities empire, which at the peak of the market 2 years ago comprised 54 properties in all, stretching from Texas to the California coast. That’s when Morgan Stanley snatched up the whole thing for a mere $6.5 billion, thanks in part to a little $2 billion loan from Barclays Capital.

Today, Morgan Stanley announced it is giving up on the whole thing. Back to the bank all those properties go. All of them. (Okay, minus a few that were jettisoned along the way.)

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Briargrove
11/12/09 7:26pm

Take the Money and Iran

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Financing, Quicklink, Religious Facilities
3 Comments

TAKE THE MONEY AND IRAN “Federal prosecutors are seeking to seize the Islamic Education Center at 2313 S. Voss, just north of Westheimer, as part of a move against the Alavi Foundation, nonprofit organization with suspected ties to the Iranian government: “Faheem Kazimi, chairman of the board of directors of IEC, said tonight that the center leases its building from Alavi Foundation. No other connection exists, he said. . . . The Center’s premises on South Voss is occupied by one of Houston’s largest Shiia mosques and Al-Hadi School of Accelerative Learning, a private Islamic school. . . . The mosque . . . will remain open while the forfeiture case works its way through court in what could be a long process. What will happen to them if the government ultimately prevails is unclear. But the government typically sells properties it has seized through forfeiture, and the proceeds are sometimes distributed to crime victims. There were no raids Thursday as part of the forfeiture action. The government is simply required to post notices of the civil complaint on the property. Prosecutors said the Alavi Foundation, through a front company known as Assa Corp., illegally funneled millions in rental income back to Iran’s state-owned Bank Melli. Bank Melli has been accused by a U.S. Treasury official of providing support for Iran’s nuclear program, and it is illegal in the United States to do business with the bank.” [Houston Chronicle]

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Downtown
11/10/09 2:38pm

Raising Funds for the New Houston Ballet Building: Just Wait Until Nutcracker Season

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Financing, Institutional Buildings, New Construction, Theater District
4 Comments

An article on Bloomberg.com forwarded by a reader provides an update on the progress of fundraising efforts for the Houston Ballet’s new building Downtown planned for the block surrounded by Congress, Smith, Preston, and Louisiana streets. You’ll remember that back in August, Ballet managing director Cecil C. Conner told the Chronicle‘s Molly Glentzer that the board had raised “about 70 percent of the funds” needed for the $53 million building — which the organization hopes to have ready for move-in by 2011.

What’s the latest news, 3 months later?

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Financing
10/30/09 2:52pm

Inside the Dilick Pickle: Those Trustee Sale Documents for Wilshire Village

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Foreclosures, Lancaster Place, Land for Sale
No Comments

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

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Comments
10/29/09 5:36pm

Comment of the Day: Sweet Ass Wilshire Village Park

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Financing, Foreclosures, Lancaster Place, Parks, Quicklink
6 Comments

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]

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Demolitions
10/29/09 1:34pm

Surprise! Wilshire Village Facing Foreclosure

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Development Strategies, Financing, Foreclosures, Lancaster Place
19 Comments

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

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Comments
10/26/09 2:29pm

Comment of the Day: The Value of Failed Developments

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Condos, Development Strategies, Financing, Hermann Park, Highrises, New Construction: Residential, Quicklink
10 Comments

COMMENT OF THE DAY: THE VALUE OF FAILED DEVELOPMENTS “The financial failure of Mosaic is not related to zoning or neighborhood protection. Mosaic represents a massive mixed-use project that will (eventually) fill up and further the civic goals of increasing population density and adding positively to the streetscape. In the mean time, the FDIC and out-of-state investors are paying the property tax bill on units that aren’t occupied by people that would stress our infrastructure. Where’s the downside in that? If the alternative were a vacant lot, Mosaic is far preferable from a civic perspective. . . .” [TheNiche, commenting on Only the Towers Remain Standing: Mosaic and Friends Break the Bank]

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Apartments
10/23/09 12:22pm

Only the Towers Remain Standing: Mosaic and Friends Break the Bank

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Bankruptcies, Condos, Financing, Foreclosures, Hermann Park, Highrises, New Construction: Residential
42 Comments

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:

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