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Tuesday, August 5, 2008

Smell of burning weasel grows more distinct

Hoffman Construction, not having been paid in a while, has reportedly slapped a lien on the Waterfront Pearl condo bunker project going up near the Broadway Bridge. But hey, don't worry. Those $2.8 million condo units are sure to be snapped up quick by eager buyers -- especially when they hear that cash flow was a problem during the construction (always a sign of quality workmanship). And a new deal with the construction lender is just around the corner.

Waterfront Pearl's main lender is CPDQ Mortgage, an affiliate of a large Quebec pension fund. A subsidiary of Australia-based MacQuarie Group furnished additional financing.
Actually, it's CDPQ Mortgage, and the original loan package was reportedly for $96.8 million. Today's report is that "[d]esign changes and other factors pushed the building's price tag from slightly more than $80 million to about $91 million."

How do you say "linchpin" in French?

Comments (8)

"Our lenders are extremely sophisticated," Mayer said. "They are international players. They have a broad perspective."

Oh boy. I'd cut that guy off.

Their basement is going to flood every year too.

That would be 'leench-pein' in Quebec-quois.
I am sure the Canadians will be delighted to have another pension fund scandal emanating from Portland (remember Craig Berkman).

Despite the claims to the contrary by Gerding Edlen, their two towers in SoWa, the John Ross and Atwater Place, have been handed over to their banks.

This in addition to their selling an equity stake in the 3720 (now) apartment tower for $145 million to institutional investors advised by Kennedy Associates Real Estate Counsel LP.
Gerding Edlen previously borrowed $113 million from Corus Bank to construct the project, a note that wasn't due for more than a year.

Gerding Edlen says they went back to their banks to renegotiate construction loans.

Yeah, and all those forclosures out there are really only renegotiations.

Sweet special treatment the priveledged big shots get. They get foreclosed upon, nobody knows it and their lenders don't miss a beat.

What was that saying about if you borrow a small amount from a bank and can’t pay, they send out the collectors. If you borrow a large amount and can’t pay, they become your partners.

"While negotiations continue, the developers have not taken any draws from their constructions loans, which meant that Hoffman didn't get paid."

That reminds me of the dotcom days when start-ups would order up all this work from local contractors and then say "We're waiting for our next round of venture capital. We'll pay you then."

Which brings to mind a classic line from Goodfellas: "F**k you. Pay me."

"clavette d'essieu."


We love it when you speak French.

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