Tag: Financing

Financing
03/05/09 1:32pm

Those Wet and Wild Houston Mortgages: 18 Percent Now Underwater, 7 Percent More Still Paddling for Air

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Houston Data, Price Trends
24 Comments

Sure is nice for us Houston didn’t get caught up in that big price run-up housing markets in the rest of the country fell for! That’s why in Houston real estate is in much better shape than it is everywhere else, right?

Not according to a study released yesterday by First American CoreLogic. The research firm estimates that 18.3 percent of all mortgaged properties in the Houston-Sugar Land-Baytown region are in a “negative equity position,” and another 6.7 percent are within just 5 percentage points of being there. “Negative equity,” AKA “I’ve fallen down and I can’t get up,” means a mortgage holder owes more than the underlying property is worth.

In other words, 1 in every 4 Houston-area mortgages is already in deep doo-doo.

But hey, all it’ll take to recover is for prices to rise a little! And the rest of the country is doing much worse, right?

CONTINUE READING THIS STORY

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Crime
02/17/09 11:46am

Feds Now Raiding Stanford Financial Group Offices in the Galleria

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Fraud, Galleria
5 Comments

From the New York Times website this morning:

Shortly after 10 a.m. Central time, about 40 police officers and other law enforcement officials simultaneously entered Stanford Group’s two office buildings in Houston. Many of the law enforcement personnel carried large black briefcases. Stanford group’s headquarters are in two offices in Houston, one within a tower of the Houston Galleria shopping mall, and the other across the street.

Photo of Stanford Financial Group Offices, 5050 Westheimer: Stanford Financial Group

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1031 Exchanges
02/02/09 12:17pm

JCPenney at West Oaks Mall: To the Bank

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Alief, Commercial Real Estate, Financing, Foreclosures
2 Comments

Buyers didn’t show up for the latest sale at the old JCPenney building next to West Oaks Mall. So Wachovia Bank will foreclose on the property soon, the CoStar Group reports.

The bankruptcy trustee for the collapsed financial empire of Edward H. Okun had listed the vacant building, which Okun’s 1031 Tax Group had bought for $4 million. But no buyers were willing to pay even the amount of the financing, which was $3 million.

The Houston JCPenney building and a mall in Salina, Kansas — also now facing foreclosure — are Okun’s last remaining properties.

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Apartments
01/22/09 12:08pm

Westcreek Apartments: Refinanced, Waiting

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Development Strategy, Financing, Highland Village, Quicklink, Redevelopment
1 Comment

WESTCREEK APARTMENTS: REFINANCED, WAITING The Austin-based owners of Westheimer’s Westcreek at River Oaks Apartments — just inside the Loop, just west of the giant new steel sculpture known as High Street — have refinanced the 574-unit complex with a $27.5 million, 7-year, floating-rate loan that allows prepayment with a penalty: “A flexible prepayment also means when market conditions warrant, the owner can redevelop the asset, which sits on 14.5 acres. ‘This is a well-maintained, but older property that sits on dirt, and the dirt is actually worth more than the apartments,’ [Matt] Greer [of Capmark Finance] explains. He says the asset’s owning partnership, which consists of local management company Kaplan Management Co. Inc. and an equity partner, will redevelop the property when market conditions come back.” [Globe St.]

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Cancellations and Delays
01/16/09 10:48am

Westwood Gardens Still Life: A Photo Tour of Half-Built Houston Homes

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Financing, Homebuilders, Northwest Houston, Westwood Gardens
99 Comments

So where are all the half-built homes? That question, asked by a Swamplot reader last week, prompted a slew of comments from other readers eager to identify pockets and neighborhoods in and around Houston where construction has come to a halt because of problems connected to the nationwide housing-market collapse. (As well as a few where construction stopped for reasons of a more local nature.)

Swamplot reader subprimelandguy suggested looking at Northwest Houston:

You need to go to the suburban areas, particularly the non master planned communities between the Beltway and Highway 6 / 1960. The most aggressive one is actually inside the Beltway near West Road and Gessner – a former Royce Homes (go figure) development called Westwood Gardens. It is a bombed out poster child for the subprime fiasco.

Then late yesterday, subprimelandguy sent in photos!

CONTINUE READING THIS STORY

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Apartments
01/09/09 4:59pm

Mosaic Avoids Foreclosure, Files for Bankruptcy

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Condos, Condos for Sale, Financing, Foreclosures, Hermann Park, Highrises, New Construction: Residential
9 Comments

The developer of the Mosaic highrise overlooking Hermann Park — a limited partnership between Phillips Development & Realty and publicity-shy Florida Capital Real Estate Group — declared bankruptcy earlier this week to avoid foreclosure on a $71 million loan from Chicago lender Corus Bankshares. Florida Capital, originally the equity partner, will be taking over as the general partner.

The bankruptcy covers just the first Mosaic tower. The second tower, rebranded the Montage, has not yet defaulted on its separate $71 million Corus loan.

So how have sales been going at the Mosaic? It depends, the Houston Business Journal‘s Jennifer Dawson learns, who you ask:

CONTINUE READING THIS STORY

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Apartments
12/30/08 5:15pm

Phillips Development at the Mosaic: Short-Term Rentals, Short-Term Stay?

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Condos, Foreclosures, Hermann Park, Highrises, Leasing
13 Comments

Need a place to crash somewhere in Houston for a short visit — say, a week — but don’t want to stay in a hotel?

Phillips Development & Realty, developers of the Mosaic and freshly rebranded Montage towers across Almeda from Hermann Park, is handling rentals of Mosaic condos owned by investors — as well as rentals of the many units the developer has been unable to unload. Now a source passes on a new rumor to Swamplot: Some of those available rentals may be extremely short-term.

Not a bad idea for a property that’s close to the Med Center! With that rumor, though, come a couple more:

Phillips’s Corporate Leasing Director will be taking over management of the Mosaic’s homeowners association from the company that had been running it since the building opened last year. But Phillips’s new tenure at the HOA may be a short-term one too. Why?

Because Florida Capital Real Estate Partners, the Mosaic’s lender, might just be foreclosing on Phillips’s property soon — both the Mosaic and an apartment complex in Tampa called the Casa Bella. Swamplot’s source also suggests that Camelot Realty Group — the company that’s clearly been very busy handling the Mosaic’s many condo sales — may already have had discussions with Florida Capital about taking over onsite rental duties from Phillips once the foreclosure takes place.

Photo of Mosaic and Montage: Swamplot inbox

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Commercial Real Estate
11/21/08 8:24am

Sonoma Walgreens: Not a Survivor

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Financing, Openings and Closings, Retail, Rice Village
1 Comment

The River Oaks version of Michael Reed’s Examiner story about Sonoma’s failed financing efforts quoted here yesterday has an additional Walgreens update appended. The halt in plans for developing the Sonoma won’t change anything:

Meanwhile, Walgreens spokesman Robert Elfinger said Monday the Rice Village store will close Dec. 31 as planned and will not be relocated.

Photo of demolition on Bolsover St. last year: Jackson Myers

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Commercial Real Estate
11/20/08 10:28am

Sonoma Developers: We Were So Close, Really!

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Condos, Financing, Mixed Use, Openings and Closings, Proposed Developments, Retail, Rice Village, Streets
1 Comment

Sonoma’s would-be developers try to explain to West U Examiner reporter Michael Reed why the Rice Village retail-and-condo project was put “on hold” only a few weeks after the sales team sent out an email to prospective buyers claiming it had received financing:

Julie [Tysor], president of the Appelt Companies, said in an e-mail response to Examiner questions about the financing, “We had secured a substantial majority of the financing for the south building through the cooperation of some local lenders who have also supported this project since its inception.”

She said a number of factors contributed to the financing falling through, “not the least of which is historical world economic crisis that is unprecedented…”

So what’s going to happen to the site — which includes that block of Bolsover St. purchased from the city — now?

CONTINUE READING THIS STORY

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Commercial Real Estate
11/14/08 11:04am

Sonoma in Translation: Not Gonna Happen

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Condos, Financing, Land Sales, Mixed Use, Openings and Closings, Proposed Developments, Rice Village, Streets
5 Comments

Rendering of Proposed Sonoma Development, Bolsover St., Rice Village, Houston

Last month, a Sonoma sales rep told the West U Examiner that the project had secured financing — which turned out to be condo-sales-speak for “Maybe if people think we’re definitely going ahead we can still sell units and somehow find a way out of this mess.” Now Nancy Sarnoff reports in the Chronicle that the developer of the condos-and-retail complex slated for what used to be Bolsover St. in the Rice Village has told her that the project “is being put on hold ‘for the short term.’” This appears to be developer-speak for “We’re toast.”

Was the problem just “economic uncertainties and tumultuous credit markets”? After developer Lamesa Corp. and partner Randall Davis pulled their switcheroo, deciding to start with the project’s second phase because they couldn’t get the more grandiose first phase financed,

they went back to the market and were negotiating for a $70 million loan with 40 percent equity to build the smaller second phase of 85 units.

At that point they had nearly 70 buyers who had put down deposits. More than half were interested in the second building.

Translation: Almost half their buyers bailed.

There’s good news for the trashed 2-block section of the Village Sonoma leaves behind, though:

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Apartments
10/24/08 3:49pm

Hanover Uptown Apartment Tower: Officially on Hold

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Financing, Galleria, Proposed Developments, Redevelopment
1 Comment

Proposed 37-Story Hanover Apartment Tower at Boulevard Place, Uptown, HoustonFrom Jennifer Dawson in today’s Houston Business Journal comes confirmation of part of Swamplot’s report earlier this week on the two highrises planned for Boulevard Place. The Hanover Company’s planned 37-story apartment tower isn’t moving forward anytime soon:

Construction was supposed to start this month, but that’s not going to happen because it’s too difficult to get a construction loan right now, says Hanover President John Nash.

He says it would be impossible to predict when the credit market would allow the project to move forward, but it could be delayed as much as a year.

Tower rendering: Solomon Cordwell Buenz, via the Houston Chronicle

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Commercial Real Estate
10/24/08 10:10am

Go-Aheads for Sonoma

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Condos, Financing, Land Sales, Mixed Use, Proposed Developments, Quicklink, Rice Village, Streets
No Comments

GO-AHEADS FOR SONOMA Randall Davis’s Sonoma development couldn’t get financing for its first phase, but the condos-and-retail project’s sales team is now saying it has financing for its second phase, planned for the south side of Bolsover St. And requirements for taking over the block of Bolsover between the two projects have been fulfilled: “In an e-mail sent Saturday, sales team member Keith Kaposta said groundbreaking at the Rice Village site was still expected in February following the expiration of Walgreens’ lease on the property at 5313 Kelvin St. In another development, the city of Houston said Tuesday that developer Randall Davis property owner La Mesa Corp. had successfully completed all work that was required by the extended deadline of Oct. 27. . . . [Public Works Department spokesman Alvin] Wright said even if the work covered under the letters of credit was not completed by the deadlines, the city would not get the property back. [West University Examiner; previously]

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Financing
10/22/08 12:18pm

Gensler Layoffs

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Houston Architects, Quicklink
4 Comments

GENSLER LAYOFFS A source who may have spent a little too much time with a chainsaw after Hurricane Ike reports on industry conditions: “It is super bad out there right now. Lending has absolutely ground to a halt. Most of my peers have almost zero pipeline beyond existing signed contracts or institutional work (esp. schools). [The Houston office of architecture firm] Gensler had layoffs this past week, though I would call laying off 16 people ‘trimming the dead limbs off the tree.’” [Swamplot inbox]

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Apartments
10/21/08 11:22am

Putting Off the Ritz: Boulevard Place Towers Stalled

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Financing, Galleria, Hotels, Mixed Use, Proposed Developments, Redevelopment
1 Comment

Aerial View of BLVD Place, Showing Proposed Ritz Carlton and Hanover Apartment Towers

Remember the two 30-plus-story towers planned for Boulevard Place on Post Oak — the Ritz Carlton Hotel and the Hanover apartment tower? How have they been surviving the rumbling credit crunch?

A HAIF user last week

got slight confirmation that both the hanover tower and the ritz are going to be delayed at least slightly… they still expected both to happen, but they will be phased in.

Then yesterday came another comment:

i can confirm this in regards to hanover.

dont expect their tower to be built anytime soon.. i would consider it postponed indefinitely rather than slightly.

Followed by this:

As a sub on this project I will also confirm this. We have been told at least 6 months of delays.

But they still look great on paperscreen!

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