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For FCE, are commercial mortgage loan defaults vexing--or just playing chicken?

From Crain's Cleveland Business, in an article headlined Commercial mortgage loan defaults vexing:
One of the nation's realty titans, Forest City Enterprises Inc. in Cleveland, talks about negotiations with lenders over debts in such a way that it sounds like a game of who blinks first. The multibillion-dollar property owner says it's willing to give back properties when it cannot get suitable terms.

CEO Charles Ratner, in a Dec. 10 conference call with securities analysts, said Forest City works with lenders to adjust mortgages for underperforming properties. He said conducting such talks are a benefit of Forest City's 50-year history developing and managing properties from Cleveland to other parts of the country.
Well, as I reported, working with" sounds like some tough negotiation.

From the call

Forest City officials were asked why they had delayed a $5 million payment on a loan for land in the Atlantic Yards footprint: ā€œIā€™m wondering what your negotiations are with the lender. Are you trying to get a lower interest rate? Are you trying to get them reduce the size of the mortgage? And how does that impact the potential close of the project?ā€

Chuck Ratner said they didnā€™t want to discuss a specific negotiation

Forest City Ratner's Joanne Minieri added, ā€œThe lender group on our land loan has been very supportive and has been working with us in connection with making sure that this project occurs as planned.ā€

The loan would have had to have been renegotiated--or extended--last week.

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