Owners: $5.4B NY housing complexes go to creditors

Owners: $5.4B NY housing complexes go to creditors

abclocal.go.com

NEW YORK - January 25, 2010 -- The financially troubled owners of two massive apartment complexes that sold for a record $5.4 billion a few years ago said Monday they're turning them over to their creditors.

(visit the link for the full news article)

Okay, so going and reading the article, I find it is only another take over of property by creditors, being the Rockefellers.

So oh joy, the rich get richer, what a great article, atleast we know how the economy is doing.


abclocal.go.com
(visit the link for the full news article)

[edit on 25-1-2010 by Quickfix]

It's okay for big companies and large builders to essentially default on their loans, but it's bloody murder if it's you and I doing it. Yea they care about the little guy.

They finally defaulted. Everyone knew this was coming for quite some time. This was the largest real estate deal in HISTORY.

I was laughing about it until I realize that Californian teachers unions were heavily invested in this as well. Oh well. They couldn't make their billions by kicking out the rent-controlled flats and sky rocketing the price. Boo hoo. Being evil doesn't always pay off.


This could be the start of the commercial real estate bubble collapse, signaling the start of a new round of credit default swap payouts which brokers don't have the money to pay off.. The house of cards could start to fall again.

[edit on 25-1-2010 by seattletruth]

OP beat me to it...was just headed over here to post this. The most expensive real estate deal in U.S. history...bust. Just another milestone, ho-hum. Seems like we get a new one each day. Historic economic events spattered across the financial highway like roadkill caracasses...all we can do is stare slackjawed at it all.

Ever seen "I am Legend?" Something about the photos of this site remind me of the eerie, emptied NYC in that movie. We ain't there yet, but weeds are sprouting from the cracked concrete for sure and there are plenty of zombies lurching around. Our zombies aren't individuals, though...they are big corporations. No, scratch that...didn't the Supreme Court recently decide that corporations are more human than human?

Jesus Christ people. Read the bloody articles will you. No.. no .. COMPREHEND the @!% articles.

The "owners" (joint investors) defaulted on the loan .. the lawyers from every angle popped out of the woodwork to decide who got what and when or rather, if, the joint venture went bankrupt. The legal preceding and fees for a multi billion dollar project would have bankrupted the largest real estate firms, would have rendered the investment worthless for everyone else.. no one wanted to declare bankruptcy because they have many other sources of income and businesses that would be effected detrimental. The outcome:

It was CHEAPER to give the property to the lenders... than it would have been to try and keep even a portion.

That's CAPITALISM. WTF is wrong with you people? Every time some idiot defaults on a Mortgage is OMG the banks are out to ruin our lives!! Banks suck. But so does over sensationalism.

reply to post by Rockpuck


I can't speak for the others posting here, but I have nothing against capitalism or the fact that this particular party defaulted.

I do think that it is a highly noteworthy item since it involved the most expensive real estate project in HISTORY. I don't think its overly "sensationalist" to take note of a massive bust such as this, or to fret over its implications.

reply to post by silent thunder


I blieve it's very important as well mate.. the main reason it collapsed was a decline in rents, occupancy dropped.. that's seriously important since the next bubble most of us are following is commercial real estate.. But if only it could be done in a rational context..

I wouldn't have a problem with Capitalism, if it was actually fair.

Although as you may all see, it clearly isn't fair, and is becoming more facist or communist.

At the end of capitalism comes communism, because the average working person has a right to despute the debt in a court, but never seem to succeed.

Peoples homes are taken along with the money they put into the mortgage.

Mort-gage by the way has a different meaning. It means Death-Pledge. Go look it up