And it's gone (I can't stop laughing)

[cjppjc]

http://www.bloomberg.com/apps/news?p..._ck&refer=home


By Hui-yong Yu and Peter S. Green
March 31 (Bloomberg) -- Boston’s John Hancock Tower, New England’s tallest skyscraper, was sold at auction to Normandy Real Estate Partners and Five Mile Capital Partners LLC for $661 million, about half of what it traded for just three years ago.

[CanuckinTX]

Re: And it's gone (I can't stop laughing)

Interesting that they even had some details about the bidding in there.

What's up with SL Green opening bidding at $20mil and that was their final bid? Sounds like there might have been some 'prior discussions' going on.

[cjppjc]

Re: And it's gone (I can't stop laughing)

Interesting that they even had some details about the bidding in there.

What's up with SL Green opening bidding at $20mil and that was their final bid? Sounds like there might have been some 'prior discussions' going on.

No. You think that's possible?

[cjppjc]

Re: And it's gone (I can't stop laughing)

Sl Green as servicer for the debt has the right to bid up to the unpaid principle balance of the Mezz piece secured by the partnership interest ($472 million). Or they can bid to a lower upset price that will be what they are willing to take for their collateral. As Normandy had previously bought mezz interests they could have told the servicer to bid to their unpaid principle balance to protect from other bidders. They try and bid as low as possible to save recording taxes on the transaction. Once everyone at the bid knows that Normandy is willing to bid up to the unpaid principle balance they effectivley chill the bid from other bidders who may want to buy it at 30million. No reason to bid as Normandy will always beat the bid. So yes Normandy and SL Green are on the same side as SL is servicing Normandy's debt. They had a game plan to secure the ownership interest. Normandy acheived its discount already when it bought the mezz piece in 2008. The forclosure process was used to close the deal and to ensure clean and marketable title most likely. This was a done deal before the auction as Normandy had the consent of the first mortgage to assume their debt and to wipe out everyone out behind them otherwise the first mortgage would have protected by foreclosing first or sending it into bankrupcy.

Thank you. I remember reading a little while ago that the likely price would be around $650,000,000. A 50% drop.

[nathanhulick]

Re: And it's gone (I can't stop laughing)

I wonder who is going to be the lucky company that gets to buy it even cheaper in a few years?