Thursday, November 26, 2009

Asbury Partners Afloat in Red Ink -Waterfront Goes on Auction Block

Today's Asbury Park Press leads with a story that is anything but cause for Thanksgiving here in AP. As many have been criticized for saying, master developer Asbury Partners has defaulted on its loans to a heretofore unmentioned financial partner, iStar Financial Inc. Another seldom mentioned financial partner, Cherokee Partners, and Asbury Partners together owe $70 million to iStar, according to the APP. iStar, a real estate investment trust, intends to liquidate the loans' collatoral by auctioning off waterfront parcels, perhaps as many as 70 - 80 parcels, at an auction in NY, on December 15th.
This raises numerous questions -
What happens to the eminent domain cases tied up in the courts now, because the Partners want to pay less than the property owners contend the properties are worth?
What happens to the payments the Partners are contracted to pay the City? There is a payment of over $400,000 due on the bond to pay for the sewer plant upgrade, which used the sewer plant for collateral and certain legal fees and City positions that are paid for or partially subsidized by the Partners
What does this say for the future of the environmentally controversial beach development site, known as Bradley Cove, at the north end of the City's boardwalk? In presentations to the city council, the Partners had estimated the sale prices of the 15 planned beach houses at $1 million, at least. What are the odds that they'll be the first to go at auction?
I'm sure there will be more questions. To add a comment here, click twice on 'comment' below.

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