real estate – Fuze Restaurant And Lounge http://fuzerestaurantandlounge.com/ Fri, 11 Mar 2022 19:30:00 +0000 en-US hourly 1 https://wordpress.org/?v=5.9.3 https://fuzerestaurantandlounge.com/wp-content/uploads/2021/06/icon-90.png real estate – Fuze Restaurant And Lounge http://fuzerestaurantandlounge.com/ 32 32 Copperline Partners pays $10 million for Palm Beach Resort property https://fuzerestaurantandlounge.com/copperline-partners-pays-10-million-for-palm-beach-resort-property/ Fri, 11 Mar 2022 19:30:00 +0000 https://fuzerestaurantandlounge.com/copperline-partners-pays-10-million-for-palm-beach-resort-property/ Palm Beach Resort & Beach Club at 3031 South Ocean Boulevard (Google Maps) Copperline Partners has paid $9.8 million for a former timeshare resort on the Palm Beach waterfront. In a bankruptcy sale, an entity controlled by Copperline chief executive Adam Schlesinger purchased the Palm Beach Resort & Beach Club at 3031 South Ocean Boulevard, […]]]>

Palm Beach Resort & Beach Club at 3031 South Ocean Boulevard (Google Maps)

Copperline Partners has paid $9.8 million for a former timeshare resort on the Palm Beach waterfront.

In a bankruptcy sale, an entity controlled by Copperline chief executive Adam Schlesinger purchased the Palm Beach Resort & Beach Club at 3031 South Ocean Boulevard, records show. Copperline, a West Palm Beach-based commercial real estate company, financed the purchase with a $5.7 million loan from Maxim Credit Group.

The station’s condominium syndicate, as debtor in possession, sold the two-story, 29-unit building. Palm Beach Resort & Beach Club was completed in 1982, records show.

U.S. Bankruptcy Court Judge Erik Kimball approved the sale in February, following the condo association’s June filing for bankruptcy liquidation. Schlesinger did not respond to phone messages seeking comment.

According to condo association bankruptcy filings, the board voted to sell the property to Copperline in May, about a year after 809 of 1,191 timeshare owners voted not to continue their timeshare ownership. . At the time of its bankruptcy petition, the condo association had about $20,000 in unsecured debt and about $1.2 million in assets, according to the bankruptcy petition.

Ido Alexander, the condominium’s bankruptcy attorney, said the association was in good financial shape. “Bankruptcy was a mechanism used to effect the sale as part of a simpler and more efficient approach,” Alexander said. “Now that the sale is complete, we are in the distribution process.”

Alexander said proceeds from the sale and $1.2 million in association assets will be divided among the former timeshare owners.

Copperline owns six multi-family and hotel properties in Palm Beach, Sunrise, Tampa and Little Torch Key, as well as real estate assets in Connecticut, New York and Pennsylvania, according to the company’s website.

Among the company’s Palm Beach properties is the Ambassador Hotel Cooperative Apartments, less than a mile north of the Palm Beach Resort & Beach Club. In 2019, Copperline purchased the former co-op at 2730 South Ocean Boulevard in Palm Beach in a bundle deal for $35 million.

A year later, Copperline sold an apartment complex in Coral Springs for $75 million.

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Chotto Matte eyes global expansion, with Doha, Riyadh, San Francisco and a second location in London in the works https://fuzerestaurantandlounge.com/chotto-matte-eyes-global-expansion-with-doha-riyadh-san-francisco-and-a-second-location-in-london-in-the-works/ Tue, 01 Mar 2022 02:32:51 +0000 https://fuzerestaurantandlounge.com/chotto-matte-eyes-global-expansion-with-doha-riyadh-san-francisco-and-a-second-location-in-london-in-the-works/ The designs for the San Francisco outpost are particularly successful – it will sit in the middle of the skyline atop a … [+] former Macy’s department store. Chotto Matte Chotto Matte, a high voltage destination for Nikkei cuisine, is on the rise. Not just with a new venue or a bloated renovation – new […]]]>

Chotto Matte, a high voltage destination for Nikkei cuisine, is on the rise. Not just with a new venue or a bloated renovation – new locations in Doha, Riyadh, San Francisco and London (the brand’s second location in the city) are in the works, with properties in Washington and Manchester to follow. “We have also secured Rome, Beverly Hills and Milan,” describes founder Kurt Zdesar, “and we are in the final stages of signing Philadelphia, Las Vegas and Nashville.”

Doha will open at the end of next month, with Marylebone, London following in April. Riyadh and San Francisco are expected to open by the end of 2022.

It’s an ambitious expansion, especially following a global pandemic that has closed more than 100,000 restaurants. in the United States only.

“Warren Buffet said it best,” Zdesar explains via Facetime. “When everyone is buying, sell. When everyone is selling, buy. The pandemic left restaurant real estate ripe for the picking, and it was able to negotiate prices. “Not only was I getting AAA sites, but I’m getting tremendous support from the owners. While I probably would have opened five restaurants in the next few years, I’m taking over 10.”

Global expansion is not a green concept for the Australian-born British food magnate. Zdesar began his career in the KFC Southern Fast Foods franchise (as a manager at 18, no less), then rose through the ranks to open the first Nobu restaurant in London before launching Ping Pong, his dim restaurant brand. sum. Add to that a gig or two as a consultant (at the Hakkasan in London and at the Bains de Paris) and he knows the bottling of lightning well.

He sold his shares in Ping Pong and opened Chotto Matte on London’s Frith Street in 2013, offering Nikkei cuisine as a lively bicultural dining experience with stunning theaters and art-decorated spaces. Miami followed in 2018 – an impressive space with a retractable roof and 33,000-pound volcanic rock – and a two-level space in downtown Toronto in 2019.

What East Nikkei cuisine? A hyper-specific facet of Peruvian cuisine born out of Japanese migrants who arrived in Peru in the late 1800s to work in the coastal sugarcane plantations. The Japanese government wanted to relocate young farmers by moving them to countries with agricultural booms. Tens of thousands made the trip.

Like many marginalized immigrant communities, they have adapted their culinary traditions to their location, preparing familiar recipes with foreign Peruvian ingredients. Nikkei – the Japanese word for emigrants – now signals the cuisine of this diaspora. (For patrons who are confused about these bicultural offerings on the menu, servers quickly explain Nikkei roots.)

At Chotto Matte, that means black cod carefully marinated in yuzu, aji and miso and caramelized on a binchotan grill, or broccoli and huacatay (a Peruvian black mint sauce) similarly charred. . The vibrant yellowtail ceviches are sumptuous with leche de tigre, grilled Peruvian corn, sweet potatoes and shiny onion strips. Anticuchos, or small pieces of octopus, chicken or salmon, are cut into small pieces, skewered and grilled until juicy and full of flavor. Drink pairings run the gamut from local wines, sake, and fluffy pisco sours.

Every weeknight, a DJ will set up camp at the entrance. Weekends are filled with everything from Drag Brunches to contemporary dance performances. “We’re not in the entertainment business, but we entertain,” says Zdesar. Dining at Chotto Matte is a highly sensory experience – sushi is set on fire next to the table, floor-to-ceiling graffiti glows in the dim light, and artists weave their way between tables.

Zdesar’s rollout strategy is to “enter markets where something like this doesn’t exist.” Are Nikkei ingredients available in this market? Are there any other Nikkei restaurants?

It looks at the locations of the most successful restaurants in the world. What cities are they in? Which neighborhoods? “In DC, all of the top performing restaurants surround the White House. So we can’t be too far from it.

Zdesar does much of this research itself. “Not only is it a financial commitment and an investment risk, but the space has to speak to me and have the right space for our concept.”

In Manchester, that means “18,000 square foot rooftop space in a growing city. People who have opened there in recent years have done exceptionally well,” says Zdesar. The designs for the San Francisco outpost are particularly successful – Chotto Matte will sit in the middle of the skyline atop a former Macy’s department store currently undergoing a massive renovation that will turn the building into a shopping mall and an extensive events center. In Los Angeles, Chotto Matte will inhabit a spacious rooftop overlooking Beverly Hills.

Doha (located in the St. Regis Marsa Arabia) and Riyadh (in the King Abdullah Financial District) will come under a new franchise system set up by Chotto Matte to facilitate global expansions. Management will be handled locally, with the brand’s UK headquarters overseeing strategy and marketing. Zdesar ensures that they limit openings to ensure that they launch each new space efficiently and correctly. “We can only grow to management capabilities.”

Later, they plan to open a training school in Miami, where new personnel can decamp and train before joining an opening team. “We would have better use of our location in Miami and it’s a goal-driven expansion – our biggest limitation right now is building our teams.”

To ensure the success of each new Chotto Matte, key members of the new locations – head chefs, executive chef, sushi restaurant managers – are sent to busy locations for a sort of quality control retreat. “If they can manage that location, we know they’ll be fine wherever they go,” Zdesar says. “It’s an investment, but we see it as an insurance policy.”

Regardless of location, each Chotto Matte will have the brand’s signature performative element. “We are thinking of full theatrical evenings, appropriate facilities and the allocation of areas where artists can work freely.” An Italian company is on board to help boost experiences, organize uniforms and find local artists.

“Every time we do something like this, the response, adoption and business improvement are phenomenal,” he continues. “These experiences are bringing us millions of social media interactions.”

“I think the whole global dining experience is going to evolve into entertainment,” says Zdesar. After years of confinement, does a restaurant exist simply as a place to eat or does it need more reasons to attract diners? “We envision a new model of what a restaurant is today – it touches all the senses.”

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Fifth Circuit Offers Commercial Tenants Likely Protection in Bankruptcy Court Free and Clear Asset Sales https://fuzerestaurantandlounge.com/fifth-circuit-offers-commercial-tenants-likely-protection-in-bankruptcy-court-free-and-clear-asset-sales/ Fri, 25 Feb 2022 05:39:21 +0000 https://fuzerestaurantandlounge.com/fifth-circuit-offers-commercial-tenants-likely-protection-in-bankruptcy-court-free-and-clear-asset-sales/ A bankruptcy court gave “unnecessary and probably incorrect” reasoning to support its “excessively broad proposition that free and clear sales under [Bankruptcy Code (“Code”)] Section 363 nullifies and essentially renders inoperative the lessee’s critical protections against a debtor-lessor under [Code] 365(h),” the United States Court of Appeals for the Fifth Circuit said on February 16, […]]]>

A bankruptcy court gave “unnecessary and probably incorrect” reasoning to support its “excessively broad proposition that free and clear sales under [Bankruptcy Code (“Code”)] Section 363 nullifies and essentially renders inoperative the lessee’s critical protections against a debtor-lessor under [Code] 365(h),” the United States Court of Appeals for the Fifth Circuit said on February 16, 2022. In re Royal Bistro, LLC, 2022 WL 499938, *1-*2 (5th Cir. 16 February 2022). The court still denied the tenants’ “writ of mandamus motion” to “compel the district court to stand pending appeal” of a bankruptcy court order authorizing the trustee’s sale of the ” real estate of the debtor… frank and clear” of the tenants. interests. Identifier. at 1. Essentially, the Fifth Circuit has signaled that it will not approve in subsequent cases a sale of real estate assets by the bankruptcy court that summarily severes the rights of debtor tenants.

The Court of Appeals pointed out that the lower courts “erred to rely on” the heavily criticized Seventh Circuit decision in Precision Indus Inc. v. Qualitech SBQ Steel, 327 F.3d 537, 547 (7th Cir. 2003) (Section 365(h) lessee’s debtor-lessor protections do not supersede Section 363(f)’s free and clear terms of sale). On the facts of the limited motion before it, the Fifth Circuit rejected the lower courts’ “overstatement of their reasoning” based on their “serious misapprehension of the law or the facts.” 2022 WL 499938, at *2. Because the “essential rights of state law of tenants in this matter [were] limited by the prior lien of the primary mortgagee on the “sold property”, however, “neither [Code] Offers under Sections 363(e) and 365(h)(A)(ii) [the lessee-appellants] protection.” Identifier. “[S]state law [was] everything the commercial court needed to decide this case” against the tenants. Identifier.

Relevance

The Third Circuit pointed out in another similar case that a trustee in bankruptcy or a debtor in possession of Chapter 11 cannot summarily use a free and clear sale under Code § 363(f) to sell property making the object of a free and quit lease and therefore extinguish the right of possession of a tenant. In re Revel AC, Inc., 802 F.3d 558, 564, 573 (3d Cir. 2015) (2-1) (the lessee requested the suspension pending the call of a sell order which would “annihilate” the interest of the lessee; reprieve granted because, among other things, “success has been assured to him on the merits”). He pointed out that Code § 365(h) protects the tenant’s interest after the trustee rejects the lease when the interest is not disputed in good faith. ID. Although the fifth circuit of royal bistro did not quote revel inhe noted the strong criticism of Qualitech by other courts and commentators. Dishi and son against Bay Condos LLC510 BR 696, 704 (SDNY 2014) (review Qualitech); In re Samaritan Alliance LLC2007 WL 4162918, *4 (Bankr. ED Ky. 21 Nov 2007); In re Haskell LP, 321 BR 1, 9 (Bankr. D. Mass. 2005); Michael S. Patrick Baxter, “Section 363 Free and Interest-Free Sales: Why the Seventh Circuit Got it Wrong in Qualitech», 59 Buses. Law. 475 (2004) (Qualitech had “the potential to have a profound impact on the world of bankruptcy”); Robert M. Zimman, “Precision in Legislative Drafting: The Qualitech Quagmire and the Sad History of § 365(h) of the Bankruptcy Code”, 38 John Marshall L. Rev. 97 (2004) (acknowledging the troubles created by Qualitech).

The Ninth Circuit followed Qualitechhowever, by judging that a debtor’s building leased to a third party could be sold free of the lessee’s interest, considering that a sale is not the termination of the debtor’s lease. In re Spanish Peaks Holdings II, LLC, 875 F.3d 892, 899, 900-01 (9th Cir. 2017) (“A sale…is not the same as…a ‘discharge’ contemplated by Section 365”). According to the Ninth Circuit, Code § 365(h), which protects a lessee of real property from rejection of its lease by the debtor-lessor, only applies when the debtor rejects the lease and remains in possession of the property. ID. (“Since the trustee did not reject the leases, Section 365 was not implicated.”) A tenant in this situation is entitled to adequate protection under Section 363(e) of the Code if the tenant requests such repair, but has failed to do so. so in Spanish Peaks. ID., at 900.

The nuanced analysis of the fifth circuit

The Fifth Circuit dictated in royal bistro focused on the particular facts of the case before it. Two tenants of the debtor’s property had objected to the sale of the property and had alternately requested “either adequate protection under Section 363(e) or rejection of the leases, which the bankruptcy court ruled refuse”. 2022 WL 499938, at *1. The tenants, “insiders of the debtor company”, have leases “inferior to the rights of the mortgagee” on the building. ID. “If there had been no bankruptcy,” the mortgagee “could have foreclosed under state law and wiped out the junior interests.” ID. The leases also lacked “non-disturbance clauses that would have protected tenants from” foreclosure. ID. For this reason, the bankruptcy court rejected the opposition of the tenants initiated to the sale. According to the Court of Appeals, “State law is all the bankruptcy court needed to decide” the case. ID.

§§ 363(f)(1) and 365(h)(1)(A)(ii) limit debtor options, subject to applicable state law. First, under section 363(f), the debtor may sell free and clear if “the applicable non-bankruptcy law permits”, subject to providing “adequate protection” to the lessee under section 363(f). 363(e). Since the tenants here had no residual value after paying off the lender’s previous mortgage debt, the trustee had no “duty to provide adequate protection.” ID.

The tenants might have had the right to remain on the debtor’s property during the term of their leases had the trustee rejected their leases “to the extent such rights are enforceable under applicable non-bankruptcy law. “, per § 365(h)(1)(A)(ii).

“Bankruptcy law, in other words, recognizes and defers to state law in these provisions.” ID., citing Butner v. United States440 US 48, 54-57 (1979) (except where the Code prevails over state law, the Code applies to applicable state law proprietary rights).

State law governed the first reason given by the bankruptcy court for denying assistance to tenants initiated into royal bistro. In addition to the leases subject to mortgagee rights, one of the tenants had “many months of unpaid rent…and was…in default”. 2022 WL 499938 to *1. Since state law determined the outcome, there was therefore no reason for lower courts to rely on Qualitech. ID. In the ninth circuit Spanish peaks Also in this case, the leases “were legally subordinated to a principal mortgage interest in the property”. ID., at 2 o’clock.

The lower courts overstated “their reasoning” in royal bistro but achieved the right result. ID. According to the Fifth Circuit, courts “must be cautioned…against blithely accepting Qualitech reasoning and textual exegesis. ID. State law therefore remains relevant in federal bankruptcy cases. It should be read in conjunction with the Code, particularly when the Code explicitly refers to it.

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Substantive Opinions on Consolidation and Non-Consolidation – Insolvency/Bankruptcy/Restructuring https://fuzerestaurantandlounge.com/substantive-opinions-on-consolidation-and-non-consolidation-insolvency-bankruptcy-restructuring/ Wed, 16 Feb 2022 08:29:23 +0000 https://fuzerestaurantandlounge.com/substantive-opinions-on-consolidation-and-non-consolidation-insolvency-bankruptcy-restructuring/ To print this article, all you need to do is be registered or log in to Mondaq.com. In this article, the authors review the elements to be included in a non-consolidation opinion issued to the lender in the context of a structured finance transaction by the board of the special purpose entity. Substantial consolidation is […]]]>

To print this article, all you need to do is be registered or log in to Mondaq.com.

In this article, the authors review the elements to be included in a non-consolidation opinion issued to the lender in the context of a structured finance transaction by the board of the special purpose entity.

Substantial consolidation is an equitable remedy under which a bankruptcy court disregards the separate legal existence of a debtor and pools the debtor’s assets and liabilities with one or more of its affiliates, in order to make distributions to creditors as part of a plan of reorganization or liquidation.

The Bankruptcy Code does not contain specific authorization for substantial consolidation. Instead, a bankruptcy court’s power to substantially consolidate affiliated entities derives from its general equitable powers.

When affiliated entities are substantially consolidated, intercompany claims between those entities are eliminated, the assets of the consolidated entities are pooled, and the claims of creditors on each entity are treated as against the common pool of assets. Substantial consolidation generally benefits creditors of one entity at the expense of creditors of another entity because each of the consolidated entities has a different debt ratio.

Lenders in structured finance transactions often require their borrowers to be special purpose entities (“SPEs”) in order to insulate the assets being financed and the cash flows from those assets from external factors, such as the performance other assets or financial condition. condition of SPE members. Substantial consolidation of an SPE with one or more of its affiliates goes against isolating the assets of the SPE, bringing them together in a common distribution pool.

HOW IT WORKS

To provide reassurance about the lender’s interest in the assets being financed and the cash flows from those assets, the lender in a structured finance transaction often requires that a non-consolidation notice be issued by the structure’s board. welcome at closing.

A notice of non-consolidation states that if one or more parent entities of the SPE file for bankruptcy, the bankruptcy court would respect the separate legal existence of the SPE and not order the substantial consolidation of the assets and liabilities of the SPE with those of one or more of its parent entities, guarantors or affiliated managers (such as an affiliated property manager).

The opinion confirms that the SPE structure required by the lender will be respected in the event of bankruptcy and that the assets of the SPE will remain isolated and will not be grouped in a common distribution pool with those of the subsidiaries of the SPE.

Since the Bankruptcy Code does not contain prescribed standards for substantial consolidation, the standards for review were developed through the courts. Bankruptcy courts have developed multiple, complicated, and sometimes conflicting criteria for determining whether a SPE should be substantially consolidated with one or more of its parent entities. However, four important categories of factors emerged:

  1. Record keeping: the SPE must have separately identifiable assets and liabilities, as well as separate accounting records and financial statements.

  2. Operational issues: the SPE should be sufficiently capitalized and economically independent of its shareholders.

  3. Intercompany transactions: the SPE’s transactions with Affiliates must be at arm’s length and commercially reasonable terms, and guarantees of the SPE’s obligations by Affiliates and other credit support by Affiliates must be limited.

  4. Advantages and disadvantages: whether the benefits of the consolidation of assets outweigh the harm caused to creditors by the consolidation of assets.

Essentially, the courts seek to determine whether the assets and liabilities of the SPE can be separated from those of its affiliates and whether the SPE can operate as a stand-alone entity.

The courts are also considering whether the pooling of estates would cause injustice to creditors who relied on the separate credit and existence of the host structure.

Substantial consolidation can occur when the assets and liabilities of an SPE are “hopelessly intertwined” with those of its affiliates or when an SPE has to rely on its affiliates to conduct its business.

PRACTICAL ADVICE

Affiliates of the SPE that are included in the non-consolidation notice are referred to as non-consolidation notice “matches”.

  • The basic rule, and requirement in rated transactions, is to match the SPE with any equity owner (or group of affiliated equity owners) that owns 49% or more of the equity interests in the SPE, plus any Guarantor and any Affiliated Manager (collectively, the “Related Entities”).

  • The non-consolidation notice will have the SPE on one “side” of the notice and the related entities on the other. Other SPEs to be transacted, such as operating lessees or general partners of a limited partnership SPE, should be included on the SPE side of the notice of non-consolidation, matched with related entities. No notice of non-consolidation is required between the SPEs involved in the transaction.

  • In real estate transactions involving both a mortgage loan and a mezzanine loan, the mezzanine borrower is not a required SVC for the purposes of the mortgage loan, as it has a separate debt which must be isolated from the debt of the mortgage borrower. Instead, the mezzanine borrower, as the owner of the mortgage borrower’s equity, should be included as a related entity in the mortgage non-consolidation notice.

Originally posted by Pratt’s Journal of Bankruptcy LawVolume 18, Number 1, January 2022.

The content of this article is intended to provide a general guide on the subject. Specialist advice should be sought regarding your particular situation.

POPULAR ARTICLES ON: Insolvency/Bankruptcy/Restructuring from the United States

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A wave of bankruptcies and foreclosures seems to be developing https://fuzerestaurantandlounge.com/a-wave-of-bankruptcies-and-foreclosures-seems-to-be-developing/ Sat, 12 Feb 2022 09:30:06 +0000 https://fuzerestaurantandlounge.com/a-wave-of-bankruptcies-and-foreclosures-seems-to-be-developing/ Economists and professionals in the corporate restructuring and real estate sector have been anticipating a struggling economy for 18 months. So far they have been wrong. The public is simply confused. Many people today don’t trust their politicians, their sources of information, and surprisingly not even their health care providers and professionals. This lack of […]]]>

Economists and professionals in the corporate restructuring and real estate sector have been anticipating a struggling economy for 18 months. So far they have been wrong.

The public is simply confused. Many people today don’t trust their politicians, their sources of information, and surprisingly not even their health care providers and professionals. This lack of trust, coupled with the pandemic-enforced way many employees are working remotely, has caused many people to reassess their lives and where they are willing to provide their services from.

Many employees in mid- and upper-level jobs will choose to work permanently remotely and never return to the office. This change in the way people will work in the future will have a profound effect on many aspects of our economy, including the ability of landlords to keep commercial space rented.

Factors influencing the current economy

COVID-19, the Delta, Omicron and now the highly contagious BA.2 variants have rendered millions of workers unavailable for work, remote or otherwise. This created a serious disruption in the supply and distribution chain. This problem is partly due to manufacturers being unable to supply components due to work disruptions at factories. Add to this shortage of supply the fact that the disruption of personnel in the transport and delivery of products caused by COVID (i.e. the shortage of truck drivers) and we can clearly see the full picture. supply chain disruption.

The threat of a substantial new round of tariffs, embargoes, and other economic sanctions based on the political climate creates new risks of the United States becoming a struggling economy. In addition, the threat of high inflation is imminent. On the positive side, until recently the stock market and the economy as a whole were generally operating at a solid and positive pace. The stock market doesn’t always accurately represent what’s really going on in the economy, but recent market volatility can be a harbinger of troubled times.

Will the accumulation of these factors ultimately cause the ailing economy predicted? No one knows for sure, but in analyzing the situation, it may be instructive to look at the issues that prevented the expected downturn.

Banks and banking services

Since the start of the pandemic, regulators have not pressured banks to take action on defaulted loans. Historically, banks have been willing to “get off the road” on defaulted loans if they could do so without significantly harming the book value of loans relative to banks’ capital requirements. Current regulatory attitudes have allowed banks to do just that.

Although regulators’ laissez-faire attitude has had a definite positive short-term effect on the economy, at some point regulators know that the effect of their actions will lead to banks having misleading financial statements.

Regulator behavior is unlikely to change before the midterm elections later this year. At some point, however, they will have to stop allowing banks to avoid ranking loans. Otherwise, they risk allowing the banking system to continue to misrepresent the value of its loan assets, with all the risks of this affecting the credibility and stability of the banking system.

My view is that when banking regulators change their stance on their treatment of defaulted loans, an anticipated tsunami of foreclosures and bankruptcies will be upon us..

Additional factors to watch out for

Interest rates have historically had a substantial impact on the economy, particularly on the real estate sector.

The Feds kept interest rates near zero to support the economy. Now, however, the specter of high inflation will almost certainly put an end to near-zero interest rates. Annual inflation in 2022 is expected to be close to 7%. The Fed has already announced its intention to fight inflation by raising interest rates from March. The question is not whether interest rates will rise. It’s more by how much and when.

Rising interest rates hurt individuals in several ways:

  • The most obvious is that they make housing less affordable. As interest rates rise, fewer and fewer people will be eligible to buy their own homes. Current homeowners with variable rate mortgages will also be negatively affected by interest rate increases.
  • Rising interest rates also have a negative impact on corporate profits. This will impact the stock market, and therefore the value of shares in individual IRAs and 401(k)s.
  • Major changes in the way people work will mean winners and losers. Time will tell how that plays out, but it certainly looks like the economy will be disrupted.

Pressures on businesses are piling up

The re-emergence of COVID in the form of the current variants has all but destroyed society’s timeline for returning to normal. There is no reliable way to predict the effect of this re-emergence on the country’s psyche. However, it is foreseeable that this re-emergence will have a negative impact on the economy and further delay the return to normal.

In fact, it is likely that normalcy as it existed before the pandemic will never fully return. Trends such as the shift of consumers shopping primarily online will have a negative effect on physical retail sales. The need for retail space looks set to continue to decline even more than it has already. This problem has been accelerated by the pandemic.

Shopping center and retail property owners are bracing for the wave of vacancies that is sure to be on the horizon. Individuals would be well advised to assume that inflation and higher interest rates are on the near horizon and should act in any way possible to mitigate the damage from the impending dual threat. It is unclear how federal, state and local governments will react to the situation.

Uncertainty is the enemy of business, and it’s clear that we face uncertain and unpredictable times. The general perception of all this by the public remains to be seen. There is a lot of distrust among the people of our nation. These factors will combine to create a perfect storm for businesses and real estate investors to experience increasingly difficult financial times.

Steps to consider

The best advice we can offer is for entities to deal with their distressed assets early on.

  • For owners, interest rates will almost certainly rise in the near future. If a homeowner can refinance their mortgage to take advantage of today’s low interest rates, this course of action should be considered.
  • For consumers, accelerating the timing of any major purchase will make sense since impending inflation will cause the dollar to be worth less and less and make the effective cost of an item more expensive over time.
  • Individuals should also consider exiting the stock market or minimizing their stock portfolios as soon as possible. Converting stocks to cash is not a good strategy in times when the value of the dollar keeps falling. Conventional wisdom holds that investing in precious metals, such as gold and silver, is a safe haven. So selling stocks and buying gold and silver makes sense.
  • business owners should analyze their business based on the assumption that the near future will bring high inflation, high interest rates and continued supply chain disruption. It is prudent to take steps to restructure the business in a way that mitigates the damage if these future assumptions come to pass.

The general public will be alert to inflation and rising interest rates and react accordingly. The sooner people and businesses accept and respond to these changes, and respond appropriately, the more likely Chapter 11 bankruptcies can be avoided. This not only increases the chances that companies can solve their financial problems without resorting to bankruptcy, but often reduces the need for layoffs.

Founder and Chairman, Distressed Capital Resources LLP

William N. Lobel is the founder and president of Distressed Capital Resources LLCa company that has brought together virtually every resource available to assist borrowers with financially distressed real estate or businesses, with the goal of maximizing a borrower’s leverage and options to successfully resolve financial problems of this borrower.

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Ohio Senate race is a Trump-era tragedy https://fuzerestaurantandlounge.com/ohio-senate-race-is-a-trump-era-tragedy/ Sat, 05 Feb 2022 12:00:00 +0000 https://fuzerestaurantandlounge.com/ohio-senate-race-is-a-trump-era-tragedy/ Bernie Moreno should have been a candidate. Instead, he dropped out of the race for the Ohio Senate seat after spending millions of his own money and never even reaching fifth place in the Republican primary polls. It’s a story with a lesson, a very sad lesson. Moreno, 54, declared himself last year for the […]]]>

Bernie Moreno should have been a candidate. Instead, he dropped out of the race for the Ohio Senate seat after spending millions of his own money and never even reaching fifth place in the Republican primary polls. It’s a story with a lesson, a very sad lesson.

Moreno, 54, declared himself last year for the seat now held by Ohio Republican Rob Portman. Portman’s seat was previously held by former Cleveland Mayor George Voinovich, another Republican; before Voinovich, by former astronaut John Glenn, a Democrat; before John Glenn, by real estate developer Howard Metzenbaum, also a Democrat.

Moreno was a candidate in the mold of those predecessors. Like them, he was extremely accomplished in private life. In his case, he built one of the nation’s largest car dealership networks, then in 2018 founded an Ohio-based tech incubator, Ownum. Prior to joining the Republican primary, Moreno, like those former senators from Ohio, espoused fundamentally moderate politics. He backed John Kasich as governor in 2010 and 2014, then Marco Rubio as president in 2016. It wasn’t until the last minute that Moreno realized he had to board the train of radicalism and Trump’s nihilism. His catch jump was spectacular and spectacularly unsuccessful.

On November 7, 2020, Moreno tweeted his congratulations to newly elected President Joe Biden and Vice President Kamala Harris on their “hard-fought victory.” In a separate tweet, he urged his fellow Republicans to accept the 140 million vote cast decision. He used the hashtag #ElectionisOver, and urged unity and an eye on rebuilding for the future. Moreno has since deleted those tweets. But he could never bring himself to endorse Donald Trump’s false claims of a stolen election.

Bernie Moreno instead made his career in the United States. He quickly rose through the ranks at General Motors. He purchased an underperforming Mercedes-Benz dealership outside of Cleveland and successfully built one of the largest auto dealership networks in the nation.

Moreno was appalled by the rise of Donald Trump. Even after Trump cemented the nomination in 2016, Moreno refused to be associated with the outcome. He acknowledged that Trump could beat Hillary Clinton. He didn’t care. In protest, he stopped donating to national Republican campaigns. “Since I see a future where the asset [sic] is the leader of what was my party, I got sidelined,” he wrote to a fundraising consultant. “I will support individual candidates, but I cannot support a party led by this maniac.” Trump, he added, was a “party-invading lunatic.”

In debates and speeches, Moreno sometimes allowed glimpses of his earlier, more reasonable and less polarizing self to emerge. But more often than not, he struggled to match the rage and resentment doctored by the two favorites, Josh Mandel and JD Vance. “This is an intentional invasion of our country,” Moreno said of asylum seekers on the southern border at a candidates’ forum in October 2021. He cheered when Mandel said the elections of 2020 had been “stolen” from Trump.

To pitch himself to Ohio voters, Moreno launched one of the most expensive ad campaigns in the history of the state’s mostly self-funded primary politics. His TV ads juxtaposed his own personal feel-good story — shot in his beautiful home, alongside his wife and four children — with searing denunciations of “socialism” and “cancellation culture.” One ad was called “Buckle Up,” and it was an apt name because it offered a choppy, jerky experience that would never be tolerated in one of the fine Mercedes automobiles that Moreno sells. He opened the spot by telling the touching story of his family’s arrival in America. Then the soft guitar music abruptly turns into angry horns. The family came, Moreno explained, to escape the socialism of Fidel Castro and Che Guevara, violent dictators “just like Bernie Sanders and AOC”. And so on. Back to strumming guitars. He is a job creator! Back to the Horns: He’s Fighting Cancel Culture! A husband and father who wants to preserve the American dream of scary brunette women in hijabs and window-breaking antifa!

The Ohio candidates are all, of course, huge imposters. Mandel, the frontrunner, also backed Marco Rubio over Trump in 2016. Jane Timken, a Harvard-educated lawyer who married into one of Ohio’s most prominent business dynasties, follows a bit behind. One of his step-uncles served as ambassador to Germany under President George W. Bush; she donated to Kasich’s 2016 presidential race. Now her campaign ads portray her as an “America First” “Trump conservative” who “ripped apart the Kasich establishment.” As for the national media phenomenon JD Vance; Well, readers of Atlantic know his story.

But some of the candidates have weaker gag reflexes than others and can better stifle all the toads that need to be swallowed to be viable in post-Trump Ohio politics. Moreno couldn’t fake enough enthusiasm to eat toads, and so he walked out. But even in defeat, the humiliations did not stop.

Moreno ended his campaign by flying to Mar-a-Lago. In a written statement, Moreno explained that the race contained too many “Trump candidates” and pledged his support, not to the winner of the vote, but to the candidate who won Donald Trump’s endorsement. In return, he received a condescending pat on the head.

“I was very impressed with Bernie who was tough on illegal immigration which after the Biden disaster at the border became a big issue for all candidates,” Trump said in a statement. “He’s done a lot for Ohio and loves his state and our great MAGA movement. His decision will help make the MAGA ticket win BIG because he’s all over the country. Thank you, Bernie, for your support and keep it up. to fight!

One can only imagine what Moreno thinks of these backhanded compliments from a man he once described as crazy. Perhaps he would feel better about his race, his exit and the millions he has spent if he had allowed himself to publicly express his true feelings towards the leader of his party.

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Marin scammers’ scheme fuels $437m property sale https://fuzerestaurantandlounge.com/marin-scammers-scheme-fuels-437m-property-sale/ Sun, 23 Jan 2022 23:35:46 +0000 https://fuzerestaurantandlounge.com/marin-scammers-scheme-fuels-437m-property-sale/ The fallout from a massive fraud scheme by Marin’s investment managers resulted in the sale of $436.5 million worth of North Bay properties. The sale involved 60 sites formerly controlled by Professional Financial Investors Inc. and its associated fund, Professional Investors Security Fund Inc. Director, Ken Casey of Novato, died in 2020. The properties, over […]]]>

The fallout from a massive fraud scheme by Marin’s investment managers resulted in the sale of $436.5 million worth of North Bay properties.

The sale involved 60 sites formerly controlled by Professional Financial Investors Inc. and its associated fund, Professional Investors Security Fund Inc. Director, Ken Casey of Novato, died in 2020.

The properties, over 1.4 million square feet, were sold last month in federal bankruptcy court. Their properties range from 3,500 square feet to 85,000 square feet, including 935 residences and approximately 680,000 square feet of commercial space.

“This is one of the largest portfolio sales in our county’s history,” said Haden Ongaro, executive vice president of real estate firm Newmark Knight Frank.

At the height of the scam, Casey and his partner Lewis Wallach had amassed 80 large properties: 29 in Novato, 10 in Sonoma, and the rest scattered throughout Marin.

Wallach pleaded guilty to federal fraud charges in 2020. He admitted to being aware that the businesses had ceased to be profitable, but continued to secure properties and assure investors of their financial stability. Companies recruited new investors whose payments were used to pay interest to existing investors.

The 60 properties sold into bankruptcy went to two Bay Area-based affiliated national real estate companies, Hamilton Zanze and Graham Street Realty, and a New York-based investment firm, Davidson Kempner Capital Management.

“We look forward to investing over $50 million in capital in these properties, which are located in our own communities,” said Ashlee Cabeal, chief financial officer of Hamilton Zanze.

More than half of the $50 million is expected to be invested in residential properties in the portfolio.

The bankruptcy sale disappointed some of the 1,300 investors in the Ponzi scheme, most of whom are Marin residents.

“There were a lot of questions that were asked and unanswered about the marketing of the real estate portfolio,” said Betsy Alberty, who lived in Marin before retiring to Port Angeles, Washington, in 2018.

Alberty said that as of July 2020, the remaining assets were estimated at $555 million.

“That’s over $100 million vaporized in one year,” she said.

Prospective buyers of the property were selected to submit a so-called “stalking-horse offer”. In bankruptcy sales, an entity is usually chosen from a group of bidders to make the first bid on the remaining assets. This stalking-horse bid is used as a minimum valuation with the expectation that subsequent bids will be higher. In this case, however, there were no higher bids.

Some investors have also questioned the wisdom of consolidating commercial and residential properties into one package, especially since commercial property values ​​have suffered so much due to the COVID-19 pandemic.

Alberty, who invested $250,000 in Casey’s scheme, said she was one of the smaller investors.

“A lot of the investors are older people who can’t work anymore, who’ve lost a lot of their retirement savings,” Alberty said.

Alberty said investors were also surprised by how the professional fees associated with the bankruptcy have accrued.

“We were told at the start that the fee was going to be $10 million to $15 million,” Alberty said. “At the end of the process, we are looking at a professional fee of $30 (million) to $40 million.”

Alberty said some investors, including herself, also believed people other than Casey and Wallach were complicit in the plot.

“We have unindicted co-conspirators who are still living on the pig,” Alberty said. “They live in houses that have been purchased by the company.”

“Basically they didn’t have to give up their way of life,” she said, “as many of the 1,300 investors lost their homes. They went on food stamps. There are people who have died from the trauma of this Ponzi scheme. »

Andrew Hinkelman, senior managing director of FTI Consulting based in Troy, Mich., who was director of restructuring in the bankruptcy proceedings, declined to comment.

But a legal statement from Gregory Gotthardt, also a senior managing director at FTI, detailed the portfolio sale process and marketing efforts.

Gotthardt wrote that “FTI logged over 70 hours of direct telephone contact with over 80 potential buyers”.

“Many investment groups dismissed the portfolio as ‘non-institutional,’ meaning the properties were insufficient in size and quality to meet their investment criteria,” he wrote.

Gotthardt said other investment groups have lost interest due to adverse conditions such as low occupancy due to COVID-19, deferred maintenance and flooding issues.

“FTI’s analysis indicated that the portfolio’s likely market price was significantly lower than indicated by a slew of pre-bankruptcy broker price opinions that had been obtained by the former director of restructuring,” which pegged the value of the portfolio at between $543 million and $567. million, he writes.

“It became apparent that the companies issuing the brokers’ pricing opinions had little or no detailed information about the true operating performance of the properties,” he wrote.

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The Day – With Bali Bungalow, Couple Bring Indonesian Furniture and Decor to Stonington https://fuzerestaurantandlounge.com/the-day-with-bali-bungalow-couple-bring-indonesian-furniture-and-decor-to-stonington/ Sat, 08 Jan 2022 22:22:37 +0000 https://fuzerestaurantandlounge.com/the-day-with-bali-bungalow-couple-bring-indonesian-furniture-and-decor-to-stonington/ [ad_1] Stonington – The showroom created by Lita and Matt Bondlow is a light and airy space, with plants of varying sizes neatly placed between the teak furniture and rattan lounge chairs, and lights covered with rattan pendant lights hang from the ceiling. There is soothing music and a light touch of incense. Rattan is […]]]>


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Stonington – The showroom created by Lita and Matt Bondlow is a light and airy space, with plants of varying sizes neatly placed between the teak furniture and rattan lounge chairs, and lights covered with rattan pendant lights hang from the ceiling. There is soothing music and a light touch of incense.

Rattan is a type of palm tree used to make wicker furniture, and the largest population of rattan trees is found in Indonesia, where Lita originated.

She and Matt founded the Bali Bungalow furniture and decor company in New York City in 2019, selling the work of Indonesian artisans. The couple are among those who fled the city at the start of the coronavirus pandemic, settling in East Lyme and settling in the Velvet Mill.

They started a year ago with a small studio next to the atrium and have since opened the showroom, which has an entrance to the parking lot on the pond side of Bayview Avenue, between Woodfellas Pizza and Zest Fresh Pastry.

“It’s nice to have this space because we meet clients in person and do all kinds of custom orders,” said Lita Bondlow. She said her job is also her way of giving back to her home country, and she returns there every year to find suppliers, do photoshoots and see her family. The couple last visited Indonesia in March and stayed there for almost two months.

“We literally jump on a moped, drive, buy it all,” Lita Bondlow said. Different artisans have different specialties, she said, whether it’s teak or weaving or stone or wood.

“We want to make furniture the way it was made before, before mass production. We want to show the craftsmanship,” she said. Matt Bondlow added that they wanted to transport furniture that will last for generations, and said people are willing to spend the money when they don’t have to buy a new chair every 10 years. Lounge chairs range from around $ 950 to $ 1,400, and dining chairs are around $ 550 to $ 650.

They furnished the new Curio hotel in Scottsdale, Arizona, and opened a restaurant in Miami. Locally, Matt said they had also worked with Surf Cantina, a new restaurant in Westerly, and Surfridge Brewing Co. in Essex, the new second location for a California brewery.

From Indonesia to Stoneton

Lita grew up in East Java, Indonesia, and studied hospitality at university. She moved to the United States over 15 years ago, at the age of 23, and worked in hotels in California and New York. She then worked as a real estate agent in Manhattan for seven years and continues to perform part-time administrative duties for a real estate company.

During this time, she met Matt Bondlow, who is originally from Darien and studied acting at Syracuse University before spending 27 years in the publishing industry in New York City. He is currently working remotely for Scientific American, as Director of Integrated Media.

Matt Bondlow said when the pandemic hit they “saw the writing on the wall” about city life. He knew the Stonington and Mystic area from growing up in Connecticut, and after traveling through southeast Connecticut, the Bondlows chose to rent accommodation in East Lyme instead of their tiny apartment in New York City.

Bali Bungalow started out primarily as an online business, with small items like pillows and throws. But Matt Bondlow said before they knew it furniture was their main business.

He said their concept is custom orders, so models can be built from preorders and delivered. Interested customers can check out the company’s website, bali-bungalow.com, but he said entering the showroom was the best way to do it.

Going forward, he said they will meet with local architects and interior designers and consider more partnerships.

e.moser@theday.com

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What $ 1.5 Million Brings You in Texas, Massachusetts & North Carolina https://fuzerestaurantandlounge.com/what-1-5-million-brings-you-in-texas-massachusetts-north-carolina/ Wed, 22 Dec 2021 15:43:29 +0000 https://fuzerestaurantandlounge.com/what-1-5-million-brings-you-in-texas-massachusetts-north-carolina/ [ad_1] Dallas | $ 1.499 million A 1920 Greek Revival style home with four bedrooms, four full bathrooms and two powder rooms and a two bedroom, two bathroom guesthouse, on 0.3 acre lot After a long history as a bed and breakfast, this house has been renovated with the aim of preserving many of its […]]]>


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After a long history as a bed and breakfast, this house has been renovated with the aim of preserving many of its original details, including wood paneling, leaded glass and a hand painted fireplace. It is in an area known as Old East Dallas, a few blocks from Baylor University Medical Center. An Aldi supermarket is a five-minute walk away and Buckner Park, a green area with public tennis courts, is half a mile away. Downtown Dallas is about a 10-minute drive, depending on traffic.

Cut: 4,736 square feet

Price per square foot: $ 317

Inside: A long, paved path leads from the sidewalk to a large columned porch, with double entry doors surrounded by original leaded glass windows.

The foyer beyond has original floors, inlaid with five kinds of wood. Next to this space is a powder room and to the left is a cozy office with a fireplace. Across the hall is a formal living room with a fireplace that has its original mantel and mirror.

Across the living room is a formal dining area with green damask paneling and wallpaper. Behind the dining area is an updated kitchen with walls painted in a buttery shade of yellow and Carrara marble countertops. Appliances include a dedicated wine refrigerator and two dishwashers. An airy family room that can serve as a den or additional dining room is open to the kitchen.

From the hall, stairs lead up to the upper levels of the house. On the second floor are the four bedrooms, each with an en-suite bathroom. Up the stairs is a comfortable guest bedroom large enough to fit a double bed, with an en-suite bathroom featuring a claw-foot tub and wallpaper in a green and white Greek-inspired print. Across the hall is a second bedroom with an adjoining living room. Down the hall is the third bedroom and the master suite, which includes a wood-paneled hallway that leads to a bathroom with a shower, bath and two porcelain sinks.

The third floor of the house is an open space that could be a game room, home office, or media room.

The old shed, across the courtyard, contains two guest apartments, each with a bedroom, bathroom and kitchen.

Outdoor space: The back yard is grassed, with several mature trees providing shade. There is a small brick porch on the first floor of the guest house.

Taxes: $ 15,785 (estimated)

Contact: Becky Oliver, Briggs Freeman Sotheby’s International Realty, 214-351-7100; sothebysrealty.com

This condominium is part of Jamaica Pond Estates, a community overlooking Jamaica Pond, and it offers water views from several rooms. Landscaping designed by Frederick Law Olmsted runs along the edge of the pond, and homes in the area have easy access to walking, running, and biking trails. Center Street, one of the district’s main thoroughfares – with several cafes, a pharmacy, and the Footlight Club, one of the country’s oldest operating community theaters – is about 10 minutes away. Downtown Boston is about a half hour drive and Cambridge about 20 minutes.

Cut: 1,687 square feet

Price per square foot: $ 886

Inside: The front door of this unit opens onto a fireplace with dark brown tiled floors, a door that leads to a powder room and another that opens onto a private patio.

Immediately to the left is a kitchen with stainless steel appliances and plenty of cupboards. Across from the kitchen is a formal dining area with a candle-style chandelier and a window overlooking the pond highlighted with white crown molding.

Across from the dining room is the main living room, which has another window overlooking the pond and a marble framed fireplace. On this side of the house is also a sunny breakfast room with doors that open onto the private patio.

Between the living room and the breakfast room, stairs lead up to the two bedrooms on the second level. The master suite has high ceilings, an elevated library area accessed by a ladder, and a view of the water; the en-suite bathroom has a tub and separate shower. The guest bedroom across the hall has a full bathroom next door.

Up the stairs is a study with floor to ceiling windows and plenty of space for a home office.

Outdoor space: The private patio has a stone fountain and access to a common green space. A tennis court used by residents of the community is within walking distance. This unit comes with a notarized parking space in a secure garage.

Taxes: $ 12,564 (estimate), plus $ 1,020 monthly homeowners association fee

Contact: Constance Cervone, Janet Deegan and Christopher Polak, Team Cervone Deegan, Coldwell Banker Realty Back Bay, 617-835-0674; jamaicaplainrealestate.com


Highlands is a popular second home for those looking to escape the heat: at around 4,000 feet from sea level, it is significantly cooler in the summer than in other parts of the South. This home is about 10 minutes from downtown, where the streets are lined with restaurants, antique shops, and cultural venues, including the Martin-Lipscomb Performing Arts Center and the Bascom Visual Arts Center. Atlanta is about a two and a half hour drive; Charlotte, North Carolina and Chattanooga, Tennessee are just over three hours away.

Cut: 1,564 square feet

Price per square foot: $ 959

Inside: This house is at the end of a block, with a driveway that leads to the garage and stairs leading from there to the porch.

Behind the glassed-in front door is a living room with blond wood floors, high ceilings, a two-sided fireplace, and sliding glass doors that open onto the back porch. Across the fireplace is an open plan dining area and kitchen with marble countertops imported from Italy, bespoke cabinetry, new stainless steel appliances, and a skylight above the living room. central island.

To the right of the front door is a hallway that leads to the bedroom wing. The first door on the left opens into a guest bedroom large enough to accommodate a queen-size bed; another similar sized guest bedroom is at the end of the hallway. They share a full bathroom with a sleek gray vanity and a combined tub and shower.

The master suite is also down the hall; the en-suite bathroom has tiled walls and a shower with a glass door.

From the living room, a staircase and elevator provide access to the lower level, an open space that can be used as a family room, home office, or playroom. A shower room, storage cupboards and a laundry room are also on this level.

Outdoor space: The deck that wraps around the front of the house has a fire pit and plenty of seating space. The back porch is surrounded by a low wooden railing and overlooks the trees. The attached garage contains a car.

Taxes: $ 7,500 (estimated)

Contact: Tricia Cox, Berkshire Hathaway HomeServices Meadows Mountain Realty, 828-526-1717; prairiesmountainrealty.com

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Chile house hunt: a winding oceanfront wonder for $ 2 million https://fuzerestaurantandlounge.com/chile-house-hunt-a-winding-oceanfront-wonder-for-2-million/ Thu, 02 Dec 2021 14:30:21 +0000 https://fuzerestaurantandlounge.com/chile-house-hunt-a-winding-oceanfront-wonder-for-2-million/ [ad_1] Mr Bergstrom said prices for high-end properties in his area have risen 25 to 30% year over year and are averaging between $ 2 million and $ 3 million. “I am selling some of the most expensive houses in Chile, and it hasn’t stopped,” he said. “The problem is, there is no more room […]]]>


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Mr Bergstrom said prices for high-end properties in his area have risen 25 to 30% year over year and are averaging between $ 2 million and $ 3 million. “I am selling some of the most expensive houses in Chile, and it hasn’t stopped,” he said. “The problem is, there is no more room to grow in small towns and the number of homes for sale has not increased. The only way to get land is to convince an owner to sell.

With remote working allowing more people to live in non-urban environments, “these traditionally second home markets have grown the most over the past 24 months,” said Jorge Miro, Commercial Director of Engel & Völkers Chile in Santiago. Among the most active markets were the central seaside town of Pichilemu, the lakeside town of Pucon, south of the lake, and Santo Domingo beach, 110 kilometers west of Santiago, he said.

Also on that list is Los Vilos, which was “primarily a fishing town, and then became a vacation resort area for middle-class people over the past two decades,” said Yuval Haym, regional director of Re / Max Chile in Santiago.

Along with the pandemic, political and social upheavals have destabilized the Chilean real estate market. In 2019, protracted protests were staged against economic inequality, and this month a presidential election will include “far-left and far-right candidates, and either outcome will lead to a leak of short-term capital, “said Matt Ridgway, owner of Chile Investments, a real estate company in the Colchagua Valley, south of Santiago. Wealthy Chileans, meanwhile, are “divesting stocks and stocks and investing in real estate” because of fears of volatility, pushing up luxury prices.

Chile’s weak peso presents an opportunity for foreign buyers who can handle some uncertainty, said Haym: “Chile is more attractive than Miami right now, with a higher return on investment. With an influx of professionals who are transferring to work in key Chilean industries like mining, fishing, and paper, “you’re almost guaranteed someone will rent your condo.”

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