I need help on a corporation that walked away from an entire block of buildings in San Fran.

[trumad]

I remember reading a year or so ago that some large corporation (Goldman? JP Morgan?) I can't remember---walked away from an entire block of buildings because they were upside down on the loan.

I was arguing with a Rightie the other day about corporations walking away from bad loans with no guilt--- and that homeowners should feel the same way.

Thanks

[etherealtruth]

1. Not San Francisco, but Manhattan

"Commercial real-estate firm Tishman and its partner, investment firm BlackRock, paid $5.4 billion to buy the property from MetLife in late 2006 — right at the market’s peak. They hoped to make money by converting rent-regulated apartments into luxury condos and raising rents."

"Tishman said last week that it was turning the property back over to creditors to avoid filing for bankruptcy protection. In recent weeks, Tishman failed to restructure $4.4 billion in debt, and couldn’t find another buyer, according to a statement from the company."

"Tishman exits the deal with a ding to its reputation, but it will be fine."

http://blog.taragana.com/business/2010/01/29/all-business-corporations-walk-away-from-mortgages-unscathed-individuals-called-deadbeats-26144/

[xchrom]

2. isn't that the one that had calpers money invested in it? nt

[etherealtruth]

3. I believe you are correct

I think their funds were involved in the OP's San Francisco "walk away," as well.

[Capt. Jack]

4. Walk Away News: Morgan Stanley Gives Properties Back to the Lender

From the Wall Street Journal:

By Emily Peck
December 17, 2009, 6:07 PM ET


snip>

So we’ve discussed the ethics of individual borrowers walking away from their mortgages. (Some say we’ve over-discussed it.) If it’s immoral, as some would say, for a borrower to walk away their mortgage, is it any different for a bank?

Morgan Stanley is doing just that. News reports on Thursday said the bank plans to give back five San Francisco office buildings to its lender–just two years after buying them at the top of the market.

“This isn’t a default or foreclosure situation,” spokeswoman Alyson Barnes told Bloomberg News. “We are going to give them the properties to get out of the loan obligation.”

Sound familiar?

snip>

http://blogs.wsj.com/developments/2009/12/17/walk-away-news-morgan-stanley-gives-properties-back-to-the-lender/

At what point do Americans say "enough is enough"?

http://www.foreclosurehamlet.org

[trumad]

5. That's it---

Thanks for the find.