Eagle Hospitality Avoids Foreclosure, Reaches Compromise With Blackstone

The Wall Street Journal reported this week that Eagle Hospitality Trust and Blackstone Group struck a deal to avoid foreclosure on 13 upscale U.S. hotels.  Eagle owns the 13 properties, which include the Cincinnati Landmark Marriott, and Blackstone holds the debt. Rather than proceed with foreclosure, Blackstone has agreed to accept an undisclosed amount as […]

Battle Over Major U.S. Luxury Resorts

An article in the Wall Street Journal this week highlights a developing battle for ownership of four giant U.S. luxury resorts. Singapore’s sovereign-wealth fund, a creditor in the bankruptcy case involving the four resorts, is forcing an auction of the properties by year-end — against the wishes of the current owners: a group led by […]

New Strategy for Underwater Mortgages Would Use Government Powers of Eminent Domain

The Wall Street Journal reports on a new approach to refinancing underwater home mortgage loans that involves municipalities using their powers of eminent domain to seize mortgages from lenders. The loans would then be refinanced through a federal loan program. The proposal, being pitched to municipalities by advisory firm Mortgage Resolution Partners, could generate returns […]

Special Servicers Face Criticism for Lean Results From Real Estate Workouts

According to a recent article in the Wall Street Journal, special servicers are being criticized by investors and analysts for cutting bad deals with borrowers and failing to disclose conflicts. The article cites a report from Deutsche Bank analyst Harris Trifon as the latest critique, which describes 12 large commercial real estate loan workouts that […]

Short Sales Outnumber Foreclosures?

A recent article on Bloomberg.com reports that the number of short sales of homes in the U.S. surpassed the number of foreclosure deals for the first time in January according to information from Lender Processing Services (LPS). However, the report warrants going beyond the headline. An article appearing on the Wall Street Journal's Developments blog […]