Posts Tagged ‘developer’

The Alter Group Named NAIOP’s 2010 Developer of the Year

Wednesday, September 22nd, 2010

NAIOP honors The Alter Group as its 2010 Developer of the Year.I am pleased to announce that The Alter Group has received the great honor of being named the 2010 Developer of the Year — the industry’s most prestigious award — by NAIOP, the Commercial Real Estate Development Association on behalf of our entire national team and our talented executive group, which has been in place for more than 30 years.

As a company, The Alter Group has stayed true to our core values and our traditional way of doing business:  maintaining solid underwriting standards; a conservative attitude towards investment; and really focusing on strong credit, both for our tenants and our assets.  We continue to work to assure that every asset has the right fundamentals in place, from a prime location to the right tenant mix, so that we can guarantee its stability over the long term.

Our industry is first and foremost about people and building communities that flourish.  These were the values that motivated the pioneers of our industry – my Dad, among them – to go to new places, to make deals over a cup of coffee and a handshake, and to see the potential in our communities.  We’re still a people business and I think this, more than anything, is what distinguishes The Alter Group.  I want to thank all of you who have partnered with us over the years – our clients, our service providers and the many municipalities that have helped us to flourish.  It is because of these that we have been here for 55 years.  We thank you.

Watergate Hotel Relegated to White Elephant Status

Wednesday, July 29th, 2009

watergate01The Watergate Hotel – the site where the “third-rate burglary” that sparked the biggest political scandal in American history and brought down Richard M. Nixon’s presidency was plotted — is now a distressed commercial property that failed to find a buyer at a much-anticipated auction.

The 251-room hotel, with its spectacular views of the Potomac River, was taken back by its owner, PB Capital, a subsidiary of Deutsche Postbank AG after no bidders expressed interest in purchasing and rehabbing the property in an auction held by Alex Cooper Auctioneers.  Monument Realty, which in 2004 bought the 12-story hotel with financing from the now-bankrupt Lehman Brothers, owes PB Capital $44.3 million and is in default on the property.  In addition to paying off the loan, the new owner would have to rehab the Watergate, which has been closed for several years.  Built in 1967, the legendary hotel needs an estimated $100 million in renovations to bring it up to 21st-century standards.

David Furman, an attorney with Gibson Dunne, is not surprised that the hotel did not interest bidders.  “Lenders usually win in these kinds of auctions because they have the ability to credit bid the full amount of their loan.  There is usually a negotiated settlement before or after the auction.  It is rare that there is an upset at a foreclosure sale.”

According to Monument principal Michael Darby, he has commitments from new investors to restore the Watergate as a five-star hotel.  Another developer, Robert Holland, wants to buy the Watergate and is in talks with the United Arab Emirates-based luxury hotel chain, Jumeirah, to operate it.

Construction-Loan Delinquencies on the Rise

Monday, June 30th, 2008

The surge in the construction-loan delinquency rate – both residential and commercial – suggests that lenders will remain reluctant to make loans for new construction.

Developers usually finance projects through short-term construction loans.  Once the project has stabilized, the developer seeks long-term debt.  With the current economic downturn, developers are finding it difficult to obtain capital.  This is compounded by a lack of liquidity in the mortgage market.  As a result, projects are worth less than they were a year or two ago.  Lenders also are more stringent in their underwriting standards, preferring highly stabilized projects with significant pre-leasing.

Short-term, the outlook is negative, as maturing loans may have problems refinancing if liquidity is non-existent.

The silver lining is that seasoned developers with strong lending relationships and leased portfolios are better positioned to develop product on an “as-needed-and-warranted” basis.