Mortgage crisis spooking high-end developments (this is going to get ugly)

[UpInArms]

Source: Associated Press

The Swiss investment bank Credit Suisse says Najafi defaulted on $275 million loan in December and told a loan officer he has no money to pay for anything at Promontory.

<snip>

Credit Suisse also is trying to call in a loan at Tamarack Resort, one of the nation's newest ski resorts, about 100 miles north of Boise. In Nevada, at Lake Las Vegas — a golf community 17 miles from the Strip that defaulted on $540 million in loans — a group of lenders led by Credit Suisse forced the development into new ownership at the start of the year.

"We're not out of the woods," said Frederick Chin, chief executive of Las Vegas-based Atalon Group LLC, which is trying to salvage lenders' investments at Lake Las Vegas, where homes cost up to $10 million. "There's a lot of financial problems here, a lot of legal problems we're sorting through, and our journey is at the beginning."

<snip>

The Yellowstone Club received a $375 million Credit Suisse loan in 2005, but members say little of the money was spent on the resort — a $100 million Warren Miller Lodge, named after the celebrated and folksy ski filmmaker, now 83, is still unfinished. The resort didn't respond to questions from The Associated Press.

Read more: http://news.yahoo.com/s/ap/20080623/ap_on_bi_ge/posh_resorts_pinched

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this will make the subprime mess look like a picnic

:scared:

[Tandalayo_Scheisskopf]

1. These developers...

Small and large, have been ripping off everyone in sight. We had one who came in to this town, to develop the last remaining undeveloped parcel of land as a senior citizen high-rise complex. He fought tooth and nail, he slandered my good friends the town attorney and his wife, the environmentalist, and spread around bribes and promises.

He is now nowhere to be seen. But you can bet his pockets got lined.

[annabanana]

2. I wonder what the market is for rental units and affordable housing?

Surely there are more of us than there are of them...

[ldf]

3. you would not believe

the number of highrise, luxury apartment buildings going up all over manhattan. everywhere. (ok, everywhere but northern manhattan.)

one, on central park north has been completed for about a year now, and still has many vacancies. you can tell because all the walls facing central park are glass. it's pretty obvious they are sitting empty.

then there are the midtown, chelsea, village highrises. they are just being completed. probably thousands of luxury "suites" going for millions.

WHO IS GOING TO BUY THESE OVERPRICED STATUS SYMBOLS?

the wallstreet bonus boys/girls can only buy so many, and there are only so many europeans rushing over to buy cheap.

but you can be damned sure they will sit empty before prices will be lowered, or be offered for reasonable rental rates.

we don't want the wrong kind of people (upper middle class) moving into the neighborhoods....

:grr:

[Johnny Noshoes]

5. Every time I see one of those new condo buildings

I can't help thinking that living in one would be like living in an office building. They have no soul, no sense that human beings live in them, they're just cold and sterile. They're going up in Williamsburg like mushrooms sprouting.

[KoKo]

4. Typical of ALL "Resort Developers" since Bush came in. Promise "Amenities" like Swimming Pool/Club

House and "parks for games for Children" and while they sell you the "BIG HOUSE" on a wing and prayer they NEVER BUILD what they stated in their Prospectus for the Property. They will leave it up to the Bush Courts or McCain Courts to DECIDE. And believe it! They are going to make sure Obama or other DEM never makes it into the WH. THEY have too much riding on this election. It's the IMPLOSION of their WHOLE SCHEMES to get RETIREES into their Crooked Crap..after they dissed the "young families" into buying into these "BOGUS RESORT/GATED/Amenities Loaded..'Communities.'"

How they manage to keep doing this shows the WEAKNESS of our SPINELESS CONGRESS! Both REPUGS and DEMS...that allowed and STILL ALLOW this Speculation to go on...WHERE NO ONE IS HELD ACCOUNTABLE for ANYTHING! :-( ...If one could :cry: about these people the tears would flood the earth...and for mostly folks less fortunate along with those who were "swindled." :cry: EVERYWHERE...from the Least Amonst Us to the Middle and beyond.

They've BOODOGGLED ALL OF US!