2009.12.29 13:08:34

Joseph Altschul

The Florida Supreme Court has ordered state courts to adopt a uniform mediation program requiring lenders seeking yo foreclose on mortgages on residential homestead property to offer mediation to borrowers.  Borrowers can decline to participate in the mediation.  If they agree to participate, borrowers and their attorneys must appear in person.  The lender, however, can appear by telephone.  The mediation is to occur between the 2nd and 4th month after the foreclosure lawsuit is filed.

 It appears the primary reason for this requirement is the belief that opening communications between borrowers and lenders will result in more delinquent loans being resolved.  Call me a skeptic.  While this program appears well intentioned, it cannot account for the structure of the mortgage industry, where most loans have been securitized and sold on the secondary market, and the "loan servicer" has very little authority to modify loans in any meaningful way.

The way out of the foreclosure crisis has been clear for years - lenders must reduce loan balances to approximate the current market value of the property.  The government and the Fed have been asking lenders to do this for years, but lenders have refused, largely because of the securitized structure of the mortgage industry and market. Currently mortgage owners have greater incentive to foreclose, where there losses are insured, rather than voluntarily taking an uninsured loss.

2009.12.25 14:15:50

Joseph Altschul

On this Christmas morning, I take a moment to go off-topic from the usual discussion of real estate related issues, and instead address the much more important message of the season - the Christmas season! This is the time of year that we celebrate the birth of Jesus, and it is a season of hope.  This is the season where we frequently receive more good will from others, and often extend more good will to others.  It is usually a season where people are nicer to each other.

May each of us take time to reflect on the most important things in life - faith and family.  Let us be thankful for all of the love and blessings we have been given.  Let us appreciate and be thankful for the gifts of love, joy, peace, patience, kindness, goodness, faithfulness, gentleness, and self-control.  And let us continue to strive to know our Creator better and to be a better reflection of Him.

As we celebrate the Christmas season, let us reflect on the words of the Prophet Isaiah in the Hebrew Bible (the Tanakh), written more than 700 years before the birth of Jesus:

He was despised and rejected—a man of sorrows, acquainted with deepest grief. We turned our backs on him and looked the other way.  He was despised, and we did not care. Yet it was our weaknesses he carried; it was our sorrows that weighed him down. And we thought his troubles were a punishment from God, a punishment for his own sins! But he was pierced for our rebellion, crushed for our sins. He was beaten so we could be whole. He was whipped so we could be healed. All of us, like sheep, have strayed away. We have left God’s paths to follow our own.  Yet the Lord laid on him the sins of us all.  He was oppressed and treated harshly, yet he never said a word.   He was led like a lamb to the slaughter. And as a sheep is silent before the shearers,he did not open his mouth.  Unjustly condemned,he was led away.  No one cared that he died without descendants, that his life was cut short in midstream.  But he was struck down for the rebellion of my people.  He had done no wrong and had never deceived anyone.  But he was buried like a criminal; he was put in a rich man’s grave.  But it was the Lord’s good plan to crush him and cause him grief.  Yet when his life is made an offering for sin, he will have many descendants.  He will enjoy a long life, and the Lord’s good plan will prosper in his hands.   When he sees all that is accomplished by his anguish, he will be satisfied.  And because of his experience, my righteous servant will make it possible for many to be counted righteous, for he will bear all their sins. - Isaiah 53:3-11 (NIV).

As we celebrate the birth of Jesus - Christmas - do not let the message get watered down, distorted or obscured by consumerism or political correctness.  Let us remember the reason for the season:

...I bring you good tidings of great joy which will be to all people. For there is born to you this day in the city of David a Savior, who is Christ the Lord. ...And suddenly there was with the angel a multitude of the heavenly host praising God and saying: 'Glory to God in the highest, And on earth peace, goodwill toward men!'" - Luke 2:10, 13 (NKJV)

I wish each and every person reading this blog peace and goodwill!  May God bless you.  Merry Christmas!

2009.10.03 10:55:15

Joseph Altschul

On September 11, 2009, the FDIC seized the assets of Corus Bank (see below for details).  As a result of the seizure, the FDIC has filed motions to stay pending lawsuits where Corus Bank was a party.  The stay is for up to 90 days.  Around 10 groups bid to acquire these assets. The Wall Street Journal is reporting that a group led by Starwood Capital's principal is likely to emerge victorious, with the other leading contender being a group that includes Miami Dolphins' owner Stephen Ross' Related Companies.  The WSJ article follows.

(From THE WALL STREET JOURNAL) By Lingling Wei, Peter Lattman and Nick Timiraos A group of investors led by Barry Sternlicht's Starwood Capital Group is emerging as the likely winner of an auction by the government of the failed Corus Bank's condominium-development loans and other property, according to people familiar with the matter. The Corus assets have a face value of about $5 billion but the winning bid will be far less than that because many condo projects funded by the bank are facing varying degrees of distress. The deal could still fall apart, the people cautioned, as terms haven't been finalized.

The Federal Deposit Insurance Corp. has hoped to seal the final deal by the coming week. The deal is the largest bulk sale of commercial real-estate assets in the current downturn but that record likely won't hold.

Many banks are now paying dearly for their lending to commercial-property investors during the go-go years and more failures are expected. Another investor group, led by New York developer Related Cos., is widely seen as Starwood's most serious competitor for the assets and has spent the past year maneuvering to buy the bank's condo assets. The closely watched auction has drawn about 10 bids from real-estate investors and developers.

Representatives at the FDIC, Starwood and Related declined to comment. Other investors in the Starwood group include TPG, Perry Capital LLC and W.L. Ross & Co., according to the people with knowledge of the matter.

Wilbur Ross, who heads the well-known turnaround firm, said at a conference earlier this week that he was a participant in the Starwood group. The bids for the assets submitted this past week are no longer subject to revision. Other bidders for Corus's assets included Crescent Heights of Miami, and Colony Capital LLC, according to people familiar with the situation.

A representative for Colony declined to comment, and Crescent Heights didn't return calls seeking comment. Corus was seized by federal regulators last month and another Chicago bank, MB Financial Inc., agreed to assume $6.6 billion in deposits from the bank. The FDIC has estimated that the Corus failure will cost its insurance fund about $1.7 billion.

Barclays Capital is advising the FDIC on the auction. A Barclays spokesman declined to comment. The auction includes luxury-condo projects in the hardest-hit housing markets in California and South Florida.

To minimize the losses to taxpayers from the failure of Corus, the FDIC will take a 60% equity stake in the partnership that ends up owning the Corus assets, according to people familiar with the auction. The FDIC also will provide financing to the partnership to acquire the assets. If Starwood is successful, it will be the latest sign that the firm is emerging as a major force in the purchase of ailing commercial-real-estate assets.

The real-estate investment firm, founded by Mr. Sternlicht in 1991, has closed a $2 billion private-equity fund to buy distressed hotel assets and recently took a real-estate investment trust public, raising an additional $950 million that will be investing in ailing commercial real-estate loans and securities. Corus, a regional lender based in Chicago, moved from student and home loans into commercial real estate at the start of the decade.

By the height of the boom it was heavily exposed to condo developments, making loans to highly leveraged projects. At the end of June, Corus had 82 loans that weren't performing or were in foreclosure out of 112 total loans. (END) Dow Jones Newswires October 02, 2009 19:16 ET (23:16 GMT)

 

2009.09.23 09:42:47

Joseph Altschul

On September 11, 2009, the FDIC finally seized Corus Bank.  The FDIC immediately resold the bank branches to another Illinois based bank.  The Wall Street Journal is reporting that the FDIC is accepting bids for the real estate assets as part of a bulk sale of Corus' $5 billion plus in real estate assets. The entire article follows:

SEPTEMBER 23, 2009
WALL ST JOURNAL

By LINGLING WEI and ANTON TROIANOVSKI

About 10 investors are expected to submit bids to the Federal Deposit Insurance Corp. by Friday for $5 billion in condominium loans and other property held by the failed Corus Bank, in a key test of U.S. commercial real-estate values.

The government-run auction, with loans backed by more than 100 real-estate developments, is the largest bulk sale of commercial-property assets since the financial crisis erupted. Bidders are looking at some of the highest-profile condo projects in the U.S., scattered from the waterfront Paramount Bay in Miami to Juhl in downtown Las Vegas.

Among the real-estate investors jockeying for what is left of Corus, which was seized Sept. 11, are a joint venture that includes Related Cos. and Lubert-Adler Partners LP; a team of Miami developer Crescent Heights and Dallas private-equity firm Lone Star Funds; Starwood Capital Group; and an investor group led by Colony Capital LLC and iStar Financial Inc., according to people familiar with the situation. Representatives for the investor groups declined to comment.

"We are offering specialized investors an opportunity to purchase an equity stake" in up to $5 billion of Corus's loans, an FDIC spokesman said. "The more that the FDIC can obtain for the overall portfolio, the more we can recoup on behalf of the creditors and our deposit insurance fund."

Such distressed real-estate sales were common in the wake of the real-estate collapse of the early 1990s, generating fortunes for savvy buyers as the market recovered and property values soared. Part of the problem today has been that few properties have been sold, making it difficult for lenders to value portfolios.

Experts following the Corus auction predict that bids will range from 30 cents on the dollar for nonperforming loans to 80 cents on the dollar for loans where the borrower is current on payments. The winning bid promises to be scrutinized by lenders across the U.S., many of which have been struggling with the valuations on thousands of condo projects and other commercial developments now in trouble.

The Corus auction "is going to create a new mark," says Norman Radow, chief executive of Radco Cos., an Atlanta developer specializing in distressed condo projects across the U.S.

The pace of distressed-asset auctions by the FDIC and other sellers is expected to accelerate. So far this year, 94 U.S. banks have failed, and others are in critical condition. Meanwhile, a record amount of than $800 billion in commercial mortgages are expected to come due in the next three years.

The winning bidder for Corus's loans is likely to try to foreclose on properties that are in default or cut deals with their developers. One potential strategy for squeezing profits from the loans is to buy them at 40 cents on the dollar, and then try to sell them back to developers for 80 cents on the dollar.

Some Corus borrowers have approached the FDIC for a chance to bid on their loans, according to people familiar with the process. The agency rebuffed those efforts, saying it is willing to sell only the whole portfolio.

That stance has sparked criticism by some borrowers who are worried the winning bidder could be a competing developer seeking to take over their projects. The winning bidder "may play hardball and put us in default," said Sonny Astani, who has a $190 million loan with Corus for a high-rise condominium development called Concerto in Los Angeles.

The Corus transaction is being structured as a partnership between the agency and winning bidder. The FDIC will hold a 60% stake and provide financing, according to people familiar with the matter. While seven other FDIC deals since 2008 have had similar partnership structures, the Corus deal is by far the largest. A similar arrangement was made in last week's sale of $1.3 billion in residential mortgages to a venture between the FDIC and Residential Credit Solutions Inc., these people said.

The public-private partnership structure is modeled on about 70 such deals pioneered by Resolution Trust Corp., a federal agency formed to clean up the savings-and-loan mess of the late 1980s and early 1990s. Rising property values in the mid- and late-1990s enabled the RTC to reduce taxpayer losses.

Still, the partnerships expose the U.S. to more financial risk than it might face by selling assets completely to private investors. The Corus auction also is complicated by an oversupply of condos in some of the same states where Corus concentrated its lending, such as Florida, California and Nevada.

In most of the FDIC deals involving failed banks during the current mess, the agency has lined up buyers to take over loans, deposits, branches and most other assets. For some failed banks like Corus, the FDIC decided to separately sell some hard-to-value assets. When Corus was seized, another Chicago bank, MB Financial Inc., agreed to assume 11 branches and about $6.6 billion in deposits from Corus. The FDIC has estimated that the Corus failure will cost its insurance fund about $1.7 billion.

2009.09.06 12:29:18

Joseph Altschul

A Los Angeles Court dismissed potions of Donald Trump's "$100 million" lawsuit against a geologist relating to his desire to expand a golf course in Ranchos Palos Verdes, California.  Any guesses on the name of the golf course - the "Trump National Golf Club."  (What a surprise there, huh?).  Trump's lawsuit alleges fraud, breach of contract and unfair business practices against the geologist.  Again, sound familiar?

 During the hearing, Trump's attorney attempted to portray Trump as- ready for this - the victim, stating that some people "smell money" when they hear Trump's name because the 63-year-old business mogul is seen "as a cash cow." The entire article can be seen here.

2009.09.05 12:27:10

Joseph Altschul

The public records, through yesterday, show that 52 of 396 (13%) units have closed during the first eight months of closings (6.5 per month) at Tao Sawgrass Condominium (formerly known as Tao Condo).  Prices have continued to decline during this time.

The real uncertainty in unit pricing arises from what will happen when the project owner, Corus Bank, inevitably fails. (See prior blog entries about Corus Bank).  If the new owner buys the project cheaply enough, it may reduce prices even further.  Last week it was reported that Corus sold its' $127 Million mortgage on the Caribbean Condo in Miami Beach for an undisclosed price, believed to be around $50 million.  

The real guesstimate is whether or not Corus has already discounted units at Tao enough so that the sale of the project will not cause further unit/ price erosion.

Wish I had a crystal ball!

2009.09.04 10:42:11

Joseph Altschul

While rumors continue to swirl about Corus Bank's immiment demise, the bank continues to try to generate cash.  Corus Bank sold its' mortgage on the Caribbean Miami Beach Condominium on August 19, 2009 to an affiliate of New York based Melohn Properties. Corus originally lend the developer $127.7 Million.  It had been offering the mortgage for sale for between $50-55 Million. The developers of the project have turned over control to the new mortgage owner.  The entire article can be found here.

2009.08.23 13:01:56

Joseph Altschul

The Trump Tower in Hollywood just opened, and the grand opening events were attended by Donald Trump's son, Jr.  What a chip off the old-block Jr. has turned out to be.  In one article about the opening in the Sun-Sentinel, he is quoted as saying "In the end, the cream rises to the top, and this building is that."  In another in the Miami Herald, he criticizes those seeking to recover their deposits: "These are the people who are now going into a 400-page document trying to find the missing comma,'' he said. ``The developer is always made out to be the bad guy."

Gee Jr. - would you consider lying to people by telling them that Donald Trump was the developer - to convince them to buy condos (and at premiums of tens to hundreds of thousands of dollars), when in fact he wasn't, "the missing comma"?

In another interesting statement, Jr. discusses his view on philanthropy with SocialMiami.com.  When reading his words, imagine he and his father applying the same philosophy to their business: "My goal is to focus on one organization and own it, make it mine,” he explained. “I don’t want to contribute my name to a thousand things and have no idea what the organizations do or where the money goes. I’ve been to many charity events in New York where you ask one of the people on the invite list what the event is about and they can’t even tell you."

Exactly the opposite of the Trump business model - where they "contribute" their "name" to "a thousand" developments during good times, at considerable profit, but when things take a turn for the worse, claim the are not the developers and not responsible for the project - even where investors purchased in reliance on the Trump name.

2009.08.23 12:09:32

Joseph Altschul

Last week Corus Bank announced that it receivied notice from NASDAQ that it was out of complicance with Rule 5250(c)(1) due to Corus' failure to file its' quarterly 10-Q for the 2nd quarter of 2009.   Corus claims that it was too busy to finiish the required reports because of its' efforts working with advisers to raise capital. Corus now has until October 12th to inform Nasdaq how it will regain compliance with rules for listing its stock on the exchange. Share price dropped from 41 cents to 38 cents.

Nevertheless, there was good news for Corus Bank.  Last week Miami condo project Everglades on the Bay became the first downtown Miami condo project to seek bankruptcy protection.  The good news for Corus: this was one of the few condo projects in South Florida where Corus was not the construction lender.

2009.08.21 21:44:15

Joseph Altschul

Earlier this week, the condominium project known as Everglades on the Bay filed for bankruptcy protection from its' creditors under Chapter 11 of the bankruptcy code.  Chapter 11 is for protection during reorganization, as opposed to chapter 7, which is for liquidation. 

Everglades on the Bay is the first project in downtown Miami to seek bankruptcy protection.  More to come.

2009.08.10 13:16:34

Joseph Altschul

Donald Trump and his organization often project an image of invincibility.  However, when it coems to legal proceedings, he takes his lumps like everyone else.  We recently discussed that his lawsuit against the NY Times for calling him a "millionaire" instead of a "billionaire" had been dismissed.

Last week a federal court in Los Angeles denied Donald and Ivanka Trump's motion to dismiss the complaint against them arising from the failed condo hotel in Baja California, Mexico (see prior blog posts, below, for more on that project). Trump, who claims that he was not the developer of the project, argued that the case should be heard in new York, not Los Angeles, because he and Ivanka did not have sufficient contacts or involvement with California to justify the lawsuit being heard there. The trial judge disagreed and denied Trump's motion to quash service of process.  The case will proceed in California.

In an unrelated case, a New York State judge dismissed Trump's case against the state, seeking $500 million in damages.  The court ruled last week that Donald Trump and his partner do not have the right to seek damages from the state for its refusal to issue permits for their "Trump on the Ocean" restaurant and catering hall planned for Jones Beach, NY.  More information about this case can be found here: http://www.newsday.com/long-island/nassau/judge-dismisses-trump-over-jones-beach-project-delays-1.1351647.

2009.08.04 11:43:43

Joseph Altschul

Now in its' eighth month since completion, Tao Condo (now known as Tao Sawgrass Condominium) in Sunrise, Florida has closed on the sale of 45 of the 396 condo units - averaging a little over five units per month.  During this time, the most commonly purchased units have been types "B" and "D," with nine of each having closed.  However, the bad news for those who closed early - prices have decreased.  For example, the first "B" unit closed in February at a sales price of $316,000.  The same unit closed in July for $280,000 - and was eight floors higher!  A $36,000 decrease in price while moving up eight floors!  Similarly, the first "D" unit closed in February for $348,000 on the 6th floor.  The last one closed in July for $290,700, on the 24th floor!  That represents $58,700 less on a much higher floor.  Not good news for those who closed early.  It remains to be seen whether these prices will be good news for those closing recently.

The drop in prices confirms that those who refused to close at contract price made the right decision.  The other wild- card is the project's owner, Corus Bank, which took the project back from the developer in 2008.  Corus Bank is unlikely to survive the month of August, and instead will likely be taken over by the FDIC within a week or two.  Once that happens, the fate of the project, including the continued maintenance, is anyone's guess.

2009.08.01 12:32:02

Joseph Altschul

If it wasn't for bad news, condo construction lender Corus Bank would have no news at all.  The last few weeks have seen the Chicago based bank's prospects for the future continue to deteriorate.  Virtually all of its' construction loans in South Florida are in default, including loans for Trump International Hotel & Tower (SB Fort Lauderdale Hotel & Condominium), Tao Sawgrass in Sunrise, Florida, Paramount Bay, Jade Ocean, and Onyx on the Bay in Miami, Florida.

During recent weeks, the troubled lender has experienced the following:

• Corus failed to meet the demand made upon it by the FDIC to increase its' reserves by June 18, 2009; 
• Corus took control of the Aventine Apartments in Boynton Beach, Florida after the owner defaulted on the $25 million balance of its' $37 million loan.  The project had been purchased in 2006 with the intent to convert the apartments into condos;
• Corus revised its' first quarter earnings report to reflect that the losses were $16 million more than originally reported;
• Corus filed a foreclosure action against the developers of Onyx on the Bay Condominium in Miami;
• On July 6, 2009, regulators rejected the bank's plan to liquidate its' assets over a period of 2.5 years, and then sell the remaining assets to an investor after 2.5 years;
• Last week Corus reported a second quarter loss of $487.3 million, making it "critically undercapitalized;"
• Bloomberg News has reported that the FDIC may seize Corus Bank as soon as August 6, 2009 - next Thursday!

Various investors have been looking at the lender's assets.  However, the FDIC has been unwilling to guarantee that purchaser's can recoup losses from the government (i.e., taxpayers) in the future, as the government did when it seized and sold IndyMac Bank and Bank United.  Potential purchasers include the Related Cos., owned by Miami Dolphins owner Stephen Ross, as well as Lubert-Adler, which partnered with Florida based Related Group last year to form a $1 Billion fund to buy distressed condo properties in Florida.

Think of the irony of the Related Group ending up with the assets of Corus Bank.  Related Group, one of the nation's largest condo developers, has agreed to a friendly foreclosure on City Place South Tower in West Palm Beach, and is negotiating similar deals on its' remaining Florida projects.  It can be argued convincingly that no company is more responsible for the condo meltdown in Florida than the Related Group - which built project after project while soliciting buyers it knew were speculators, promising them that they could flip the property without closing.  As the company negotiates to dump its other projects, it seeks to buy more projects at a discount.  Only in America!

For a reminder of Related Group's sales practices in recent years, see the NY Times article here. 

2009.07.26 16:08:49

Joseph Altschul

The lender for the proposed Trump Tower condominiums in Tampa, Florida, Colonial Bank, foreclosed on the site and sold the property at public auction on July 15, 2009.  Colonial Bank is now looking to unload the site once designated for the $300 million Trump Tower Tampa.  The entire article can be found here: http://tampabay.bizjournals.com/tampabay/stories/2009/07/27/story3.html.

Just one of numerous "Trump Tower" projects to have failed in recent months.  So much for the "Midas touch."

2009.07.23 08:37:28

Joseph Altschul

Donald Trump lost a second lawsuit in the last couple of weeks.  First, as reported below, his lawsuit against a New York Times reporter for slander / defamation for calling him a "millionaire" instead of a "billionaire" was tossed out of court. 

Now his lawsuit against a law firm for listing him as a firm client on the firm's website has also been thrown out of court.  In fact, the firm had actually represented Trump in the past.  Nevertheless, Trump's lawsuit accused the firm of engaging in "the rank commercialization of Mr. Trump's reputation and unyielding demand for excellence."  

How ironic indeed. Isn't the "rank commercialization" of Trump's name and reputation his modus operandi? Indeed, he sells ("licenses") his name for use on condominiums and hotels throughout the world - knowing that in the past, people have been willing to pay premium prices for condominium units based on what they believed was Trump's "unyielding demand for excellence."  When the projects turn out to be not so "excellent" after all, Trump distances himself with the claim that he was not the developer, but had merely licensed the use of his name. (ie, Trump Projects in Fort Lauderdale, Florida; Sunny Isles, Florida; Baja California, Mexico; Tampa, Florida; Dubai, Waikiki, Atlanta, etc.).

The entire article can be found here:  http://cityfile.com/dailyfile/6608

2009.07.19 12:43:44

Joseph Altschul

On Friday, the FDIC placed four financial institutions into receivership.  This included two from Georgia, one from California and one from South Dakota.  It did not include Chicago condo construction lender Corus Bank, the lender for many South Florida codominium projects, including Tao Condominium (now known as Tao Sawgrass Condo) in Sunrise, Florida, SB Fort Lauderdale Hotel and Condominium (also known as Trump International Hotel and Tower), and Paramount Bay in Miami.

Corus has been on the chopping block for months.  It was denied TARP funds by the government last year in the first bail-out / stimulus, and was given until mid-June to significantly increase its' reserves.  Despite offering the highest CD rates n the country, Corus failed to attain the level of reserves required by the FDIC.

According to a Bloomberg News report late last week, U.S. regulators are poised to seize Corus, and are preparing to auction the entire company or its assets. The report cites unidentified sources as stating that Corus may be taken over by the government within the next several weeks.  Colony Capital LLC and Related Cos. (owned by Miami Dolphins owner Stephen Ross and closely connected with condo developer The Related Group) are among the investors who’ve expressed interest in Corus’s assets.

Corus’s fate has shifted into the hands of the FDIC because the lender and its financial adviser, Bank of America, have not found a buyer willing to complete a deal in the absence of government assistance - like the government provided after the failure of BankUnited and IndyMac Bank.

Corus, incorporated in 1958, had a $5.4 billion commercial real estate loan portfolio as of March 31, including $997 million to condominiums in South Florida, according to SEC filings.  Condominium values in the Miami area declined 39 percent at the end of the first quarter compared with a year earlier, the fifth-largest decline for a U.S. metropolitan area. The entire Bloomberg article can be found here: http://www.bloomberg.com/apps/news?pid=20601109&sid=aOLknByL33iI.

Corus has been sued in many lawsuits (including some filed by our firm) for the recovery of preconstructions condominium deposits.  It has also a defendant in federal court cases in California and Illinois alleging claims for securities fraud.

2009.07.18 16:43:50

Joseph Altschul

As of July 18, 2009, Tao Condo, now known as Tao Sawgrass Condominium, has closed on 43 of 396 units.  This represents six additional units since our last update three weeks ago. Tao is owned by its' construction lender, Corus Bank, who took the property back from the developer, the Weitzer organization, in 2008. 

In the meantime, rumors continue to circulate in the financial community that the FDIC is poised to seize Corus Bank and its' assets.

2009.07.17 11:37:14

Joseph Altschul

Purchasers of preconstruction condo units at "Trump Tower" in Waikiki, Hawaii, have joined the chorus of purchasers claiming they were misled about Donald Trump's involvement with the development of the project.  Like the "Trump Tower" projects in Fort Lauderdale, Florida, Sunny Isles, Florida, and Baja, California (Mexico), Trump claims that he is not the developer, and that the real developer mrely had a licensing agreement for the use of the Trump name.  

Sound familiar?

2009.07.16 14:24:53

Joseph Altschul

The Wall Street Journal is reporting that private equity firm Starwood is in talks with regulators to buy assets of Corus Bankshares, Inc.  Corus is the lender for South Florida projects such as Trump International Hotel & Tower in Fort Lauderdale, Tao Condominium (now known as Tao Sawgrass Condo) in Sunrise, Florida, and many condos in Miami, including Paramount Bay, Everglades on the Bay, and Infinity at Brickell.

Corus missed the FDIC's June deadline to increase its' reserves or face government receivership.  However, the FDIC has not yet put Corus into receivership.

2009.06.27 11:04:23

Joseph Altschul

As of June 26, 2009, Tao Condo, now known as Tao Sawgrass Condominium, has closed on 37 of 396 units.  The owner of the project, Corus Bank, is averaging approximately 6 closings per month, having begun to attempt closings  in December 2008.  At this rate, it will take the building owner five years to see the remaining 359 units.