[Info-vax] OT. Auction of Maynard's Clock Tower Place

[JF Mezei]

On 15-03-15 12:43, johnwallace4 at yahoo.co.uk wrote:
> There's a bit more info in
> http://maynard.wickedlocal.com/article/20150305/NEWS/150307873
> 
> It's near impenetrable to me, but IF I read it right, it's a bit of
> financial engineering to let the place carry on pretty much "as is",
> under new management, but having got rid of a large debt the current
> owners can't afford to pay and the new owners don't want to pay.


Saracen bought the *mortgage* from JP Morgan this year. This means
current owner, Wellesley sends monthly mortgage payments to Saracen
instead of JP Morgan. And if it defaults in its payments, it means
Saracen is the one who seizes the property.

Mortgate value was 64 million in 2005. After 2008 real estate collapse:
property value 18 million. Since then, mortgate has been "under water"
where value mortgage is higher than value of property.

Second part: Wellesley is losing money and can't afford the property
anymore due to loss o key tennants, the 2008 real estate collapse and
lacking sufficient funds to upgrade the site to command higher rent.

So the propery is up for sale and Saracen will end up owning it. Saracen
has the money to invest in the property. Zoning changes allow parts to
be converted to condos.

So it looks to me like a company that paid $64 million for a property
worth $18 did so because it knows that by investing X, it can turn this
property into something worth far more than $64 million.

Looks to me like a high risk for MAJOR modifications/upgrades to the
property.

Says nothing about whether the face of the property has to be preserved
or not.

Of note: The famous Watergate hotel in Washintgon is part of the
Watergate complex. It closed many years ago, but is now been bought and
being renovated. The renovation requires that the oustide of the hotel
not change in appearance at all. And that includes windows. (whcih are
being changed but new ones have to look the same).

So perhaps residents could lobby the town to have similar rules on the
building to preserve its appeance.

http://www.saracenproperties.com/portfolio/

It already lists Clock Tower Place in its portfolio, broken up into 14
buildings.