Now Stuyvesant is being restructured:
Nov. 9 (Bloomberg) -- Tishman Speyer Properties LP and BlackRock Realty, the owners of Manhattan’s Stuyvesant Town- Peter Cooper Village, moved closer to restructuring $3 billion in debt on the apartment complex as the property verges on default, Fitch Ratings said.
That was harmless enough, wasn't it? But boy were the hands wringing!
Look at this piece by Lord Abbett--the second paragraph to the bottom: "Since previously borrowers had to just about declare bankruptcy to restructure without tax consequences, this change will also bring liquidity to this market by giving both borrowers and lenders ways to relieve trouble without either having to go to extremes or pay a tax penalty."
Commercial Real Estate(2)
Today on Bloomberg, we see Goldman is underwriting some bonds
Nov. 9 (Bloomberg) -- Goldman Sachs Group Inc. is underwriting $400 million of bonds backed by an Ohio real estate company’s shopping centers in the first sale to tap a U.S. program to unlock lending in the commercial mortgage market.
The bond is backed by 28 properties owned by Developers Diversified Realty Corp., according to people familiar with the transaction who declined to be identified because terms are private. The offering comes a month after Goldman Sachs made a loan to the Beachwood, Ohio-based company in part to repay debt on the properties and others.
The Federal Reserve opened its Term Asset Backed Securities Loan Facility (TALF) in June to newly issued commercial mortgage-backed securities to stimulate lending and avert a wave of foreclosures as borrowers fail to refinance. There have been no new sales of the debt since June 2008, according to data compiled by Bloomberg.
“It would be good for the market psyche to actually see a new deal done,” said Kent Born, senior managing director at PPM America, an investment manager in Chicago. “But as a practical matter it’s not going to get us back to the type of deals that were the bread and butter of the market merely two years ago.”
Nov. 9 (Bloomberg) -- Former Federal Reserve Chairman Alan Greenspan said a rebound in stocks is “re-liquifying” the U.S. economy and housing prices are showing early indications of ending their decline.
“We have been very fortunate that the stock markets moved back” and are “re-liquifying the whole process,” Greenspan said at an event in Edmonton, Alberta, presented by Abu Dhabi National Energy Co., the state-controlled energy producer known as Taqa.
Where was Alan at 666?