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

[BillPedersen]

On Sunday, March 15, 2015 at 1:59:45 PM UTC-4, JF Mezei wrote:
> 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.

It is doubtful that Saracen paid $64Million for the mortgage.  Wellesley has been behind on their mortgage and JP Morgan does not want to be in the real estate business as a landlord of a struggling property.  So they probably have taken the decision to write down the loan and still make SOME money on the deal.

Saracen has a reasonable record and has money to invest.  I would expect them to work with the city and community given the size and impact of that property right in the heart of Maynard.

Bill.