Deal Tracking Report - 1000 Museum Condo Inventory Loan (edit, Deal Management)
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| Most Recent Comments - 1000 Museum Condo Inventory Loan | ||
|---|---|---|
| Date | Company | Comment |
| 09/29/2020 | Winthrop-Witkoff | Passed; look at transactions in New York only -- lbaucom |
| 09/29/2020 | Yam Capital | too large for them; Passed -- lbaucom |
| 09/29/2020 | W Financial | deal is too large for them; they are concerned that they are hyper luxury units which means a smaller market; Passed -- lbaucom |
| 09/29/2020 | Blackstone | 9/24/20 Follow up discussions with Tony - expect to get outline of terms week of 9/29 -- lbaucom |
| 09/29/2020 | Benefit Street Partners | Passed; have seen it before and don\'t want to have anything to do with it -- lbaucom |
| 09/29/2020 | Morgan Stanley | 9/24/20 email to Michael - $20M mezz position -- lbaucom |
| 09/29/2020 | Morgan Stanley | Michael, Attached above is the condo inventory loan deal that we are working on. The following is a link to the Data room: One Thousand Museum - Data Room We now have a potential preferred equity position of about $20M that could offer opportunistic returns per your question in your email below. We are asking for a condo inventory loan of $110M. The suggested pricing of the loan is 6%, thus it did not meet your criteria of opportunistic returns. We have very strong interest, but our best pricing on the condo loan is for a total loan of $90M -$95M. So, we are now open for a preferred equity position of $20M which can be priced to opportunistic returns. As you will see in the Data Room, the sales history is strong. The 70% of units sold averaged $1,131 psf. Particularly notable, as you will also see in the sales history, in 2020 since March (Covid period), they have sold 12 units at an average price of $1,076 psf. The issue is that they have been selling at a discount to where they should be in order to reduce debt that is expiring. The objective is to arrange a new condo inventory loan of 24-30 months to allow the remaining 30% of units (29 units) to be sold at prices reflecting proper market value. The proforma on page 33 of the presentation is based on $1,350 psf. The target sales proforma is $1,450 psf. They have achieved in the sales history a high pricing of $1,601 psf. As you will note on page 7 of the executive summary, the LTV is low at 58% based on the $1,350 psf. Based on average sales of $1,131 psf, the LTV is still only 69%. As a footnote, there is no competition in the entire Miami market for ultra-luxury condominium units of greater than 3,500 sf. The only alternative for a buyer would be a single family residential unit. The market for condos of this ultra-luxury quality and size internally is substantial. On page 9 of the presentation, the buyer profile has been typically buyers that own 3 or 4 other homes around the world. The buyers were from many countries: United Kingdom, Brazil, Venezuela, Mexico, Peru, Switzerland, Italy, China, Germany, Greece, India, Lebanon, Norway, Puerto Rico, and Turkey. There is strong demand and limited supply. This is the ideal position to be able to achieve significant increase in prices for the remaining 29 units. As you will see on page 32, the remaining units are the premier units saved for the last sales. We look forward to discussing this with you at your earliest convenience. Best regards, Larry -- lbaucom |
| 09/29/2020 | Silverstein Properties | 9/8/20 - have seen this deal before; Passed; inferred that it has been shopped around a lot and don\'t like the high per unit cost basis in the project; prefer more middle market condo deals -- lbaucom |
| 09/29/2020 | The Related Group | this group is on the exclusion list with the client -- lbaucom |
| 09/29/2020 | Rockpoint Group | Have left several messages about the senior loan and also told him there might be an opportunity for either Pref Equity or Mezz between $15-$25M. No response as yet. -- pwitham |