Two years ago the 320-unit Rincon Center Residential Towers (88 Howard) was sold to New York based Capital Properties for $143 million. The purchase was partially financed with a two-year $110,000,000 note, the terms of which included a possible one-year extension.
The loan matured 6/12/09. The Lender notified the Borrower that it did not satisfy the terms and conditions required for the 12 month extension, and as such the Loan is in default. The Borrower disputes the Lender’s claim, believes that it qualifies for the Loan extension and has continued to pay monthly debt service payments (last payment date 11/12/09).
The Borrower has invested over $10,000,000 in the Property since its acquisition in 2007, completing the renovation of 85 of the 244 market rate units, including tasteful upgrades to the flooring, kitchen appliances, countertops, cabinetry, lighting, bathrooms, and fixtures.
And as a plugged-in tipster notes, the lender is now trying to sell the note on the twin 25-story and condo mapped (but currently rental) property via Eastdil Secured.
∙ Rincon Towers: From Apartments, To Condos, To Apartments [SocketSite]
Several questions come to mind.
Why were the plans to go condo a while back dropped? Was it the market and a lack of potential buyers?
What is the vacancy rate in this “luxury” rental building today?
Hey Gil,
They probably felt it was not the best climate to come out with sales.
Paul
“They probably felt it was not the best climate to come out with sales.”
Yeah, but it seems they decided not to go condo in 2007 – before the downturn. Did they see weakness in the market back then?
I assume they knew they’d be fighting with Infinity and 1 Rincon and would have a hard time matching them. Hindsight being 20/20, maybe they could’ve gotten in under the wire at a lower price point…I don’t remember the timing precisely.
great building small floorplans
306 out of 320 units smaller than 900 sqft. Over 100 studios. Tiny bathrooms. Laundry in basement. Not the best starting point for a luxury condo conversion.
http://www.rinconneighbors.com/rent.html
Are they selling the building? who’s buying?