The facts are pretty simple.
Is IStar technically in trouble as co on the whole? Maybe, depending how you
look at it. Hoewever, since their "maybe going bankrupt", investors think
otherwise, as their stock CLIMBED from the low 2.00 range to around $6.50....
IF you really think they'll roll over what is maybe $70m or more on $70m or
more of their loan - WHY? Will they or should they give up their "rights" which
have a value all their own? They will still own the property, unless they
decide to sell some off - when they want to, at a price suitable to them.
Do you think that their land is WORTHLESS? Do you think their inherited rights
are WORTHLESS?
Without knowing all the details, that $70m loan may turn out to be great
investment. HOW? Simple. Figure it out. They own more or less all the property
and RIGHTS to develop. A major portion of the infrastructure, engineering and
planning has already been completed.
And the land their clearing - it's THEIRS. They obtained the rights to that
land - regardless of what I or anyone else thinks.
>From a development point of view - IF they are marketing the properties as
>development parcels to anyone or group - with the city or to their own
>development partners - it's makes a much nicer presentation to show LAND -
>uncluttered FLAT LAND - on the OCEAN.
A developers dream - even if it means having to work within the development (or
preceived) process known to have plasgued AP all through history.
Fi you want to play with numbers - even if the owners sold rights over the next
30 years to use that magical number of 3,000 condos (or homes,apartments etc),
for only 50,000 per unit right (3,000*50,000)
that comes up to %150,000,000.
Of course I have to leave the projected valuations to our expert appraiser here
Ok, so they can't build and selll 3,000 units tomorrow morning. Maybe a more
realistic plan exists - whatever that is. What do you want - 10 homes along
ocean ave?
You will have, someday something gracing ocean ave, kingsley and the 'infill"
area.
Maybe the city shoiuld rethink the %250,000 outlay (for now) to "fight" this.
Maybe they should invite Istar to the table once again
- maybe over a beer - and resolve the "issues".
Pick up the phone and call. Get in the car and sit in the offices of IStar.
I'd try that before handing over more money to fight what may be a losing
battle.
Then again, I know none of the details.
Get the cameras rolling for the next reality show from AP.
Best of luck.
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