In the April 12, 2006 Wall Street Journal is an article, “Big Banks Find Property Loans Riskier” by David Enrich, which describes the main reason Manhattan House residents are in their current predicament.
The piece is about “the growing jitters among bankers and regulators that an influx of capital into commercial real estate lending is causing some in the business to take aggressive risks and could leave banks over exposed in a cyclical industry.” Commercial real estate lending covers apartment complexes like Manhattan House.
Specifically, major lenders are choosing not to compete with investment banks, which they fear are agreeing to lending terms that would be unheard-of in a less feverish environment. The intense competition is in part yet another byproduct of the huge supply of capital in the hands of yield-hungry investors.
Credit Suisse – a global investment bank - provided Kalikow and O’Connor the loan to purchase Manhattan House through the use of CMBS (Commercial Mortgage Backed
Security) notes.
“I’m from Texas, and I’ve seen this movie before,” said Todd Maclin, J.P. Morgan Chase & Co.’s commercial-banking chief.
Wednesday, April 12, 2006
Tuesday, April 11, 2006
Condo Conversion Articles
Listed below are links to 3 condo conversion articles that might be of interest to MH residents.
Understanding a Condominium Offering Plan
Financing Condominium Offerings
The Sword of Spitzer
Understanding a Condominium Offering Plan
Financing Condominium Offerings
The Sword of Spitzer
Friday, April 07, 2006
Tenant Questionaire
All concerned Manhattan House tenants should fill out and submit the Tenant Questionaire. Please send it to Rafael Urquia or directly to David Rozenholc, 9 East 84 Street, NY, NY 10021.
Print out the Tenant Questionaire by clicking here
Print out the Tenant Questionaire by clicking here
Friday, March 03, 2006
Spotting Glut, Bloomberg Deflates Condo Cushion
Mayor Bloomberg recently —and rather suddenly— inserted a big pin into the oxygen-deprived real-estate bubble.
On February 23rd Mr. Bloomberg announced the establishment of a task force to overhaul a Lindsay-era program (the term of art is the 421a program) established back when there was little hope of attracting new construction in the city.
In recent years, hundreds—if not thousands—of market-rate condominiums have sprouted up across the city on the public’s dollar under the 421a program.
Click here to read the NY Observer story
On February 23rd Mr. Bloomberg announced the establishment of a task force to overhaul a Lindsay-era program (the term of art is the 421a program) established back when there was little hope of attracting new construction in the city.
In recent years, hundreds—if not thousands—of market-rate condominiums have sprouted up across the city on the public’s dollar under the 421a program.
Click here to read the NY Observer story
Monday, February 27, 2006
Tenants Say They're Lost in Dust of Conversions
This is what will happen to tenants at Manhattan House if they don't join together and fight back.
"Unlike the 1980's, tenants today have little control over issues like the hours and extent of renovation work and whether a steep discount in purchase price is offered."
Click here to read the full NY Times story
"Unlike the 1980's, tenants today have little control over issues like the hours and extent of renovation work and whether a steep discount in purchase price is offered."
Click here to read the full NY Times story
Thursday, February 23, 2006
Benefits of Working Together - Case Study
The Wall Street Journal on Tuesday examined how the Amish and Mennonites -- members of the Anabaptist religious denomination -- have been able to "organize and drive down the price of [their] medical care" in Pennsylvania.
The rates negotiated are "as little as half the full retail rate other uninsured patients are likely to be charged," the Journal reports.
Click here to read a summary of the story
The rates negotiated are "as little as half the full retail rate other uninsured patients are likely to be charged," the Journal reports.
Click here to read a summary of the story
Sunday, February 12, 2006
69 Street East 2 BR/2Bth Condo for Sale
New on the market is a 2BR/2Bth condo at Imperial House. Imperial House is the best comparison in the neighborhood to Manhattan House.
The asking price for the apartment is about $1,000 per square foot. It is also "sunflooded" and "very spacious."
Tenants can probably use their dishwashers and toaster ovens at the same time.
The asking price for the apartment is about $1,000 per square foot. It is also "sunflooded" and "very spacious."
Tenants can probably use their dishwashers and toaster ovens at the same time.
Wednesday, February 01, 2006
Competition
Two planned projects may begin a major transformation of the shopping district on 86th Street, according to the New York Times.
http://www.nytimes.com/2006/02/01/business/01lex.html (registration required).
Most MH families who are likely to purchase large apartments send their kids to schools near 86th street. The negotiations to assemble these parcels were "innovative and extended."
O'Connor and Kalikow could not have anticipated two high profile, and competing, projects would be coming onto the market so soon after they bought Manhattan House.
http://www.nytimes.com/2006/02/01/business/01lex.html (registration required).
Most MH families who are likely to purchase large apartments send their kids to schools near 86th street. The negotiations to assemble these parcels were "innovative and extended."
O'Connor and Kalikow could not have anticipated two high profile, and competing, projects would be coming onto the market so soon after they bought Manhattan House.
Sunday, January 15, 2006
Dues
The Manhattan House Tenants' Association has decided to assess dues of $500 per apartment to defray anticipated conversion related expenses.
Conversion related expenses include professional fees for an attorney, an engineer, and accountant, and possibily a public relations specialist.
Tenants may pay the entire amount now, or pay $250 now and $250 when the red herring is filed.
Please make your checks payable to Manhattan House Tenants' Association. Kindly write your apartment number on your check and leave it in an envelope at the concierge's desk addressed to Katherine Fleming (D-1901).
Only tenants who have paid their dues will be invited to attend future tenants' meetings.
Conversion related expenses include professional fees for an attorney, an engineer, and accountant, and possibily a public relations specialist.
Tenants may pay the entire amount now, or pay $250 now and $250 when the red herring is filed.
Please make your checks payable to Manhattan House Tenants' Association. Kindly write your apartment number on your check and leave it in an envelope at the concierge's desk addressed to Katherine Fleming (D-1901).
Only tenants who have paid their dues will be invited to attend future tenants' meetings.
Friday, January 06, 2006
O'Connor Capital Partners Investment Philosophy
O'Connor Capital Partners Investment Philosophy ( taken from http://www.oconnorcp.com/investment_philosophy.htm )
The key phrase here is: react quickly. That is why time is on the side of the tenants in a condo conversion.
O'Connor Capital Partners believes that successful investing in real estate requires the ability to create strong, consistent flow of quality investments; to recognize the value of an opportunity and react quickly to it in a rigorous and disciplined manner.
The key phrase here is: react quickly. That is why time is on the side of the tenants in a condo conversion.
Manhattan House is Sold
Manhattan House has been sold to a group of prominent real estate professionals. Here is a link to the full story.
http://www.nysun.com/article/22211
http://www.nysun.com/article/22211
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