The Real Deal Miami

Posts Tagged ‘lehman’

  • Lehman makes risky property investment

    August 04, 2010 06:30PM

    Lehman Brothers Holdings, brought down in part by its huge property investments, is reinvesting in some of its existing deals on a bet that commercial property markets are bottoming out, the Wall Street Journal reported. Since the investment bank’s collapse in September 2008, Alvarez & Marsal — the firm overseeing Lehman’s bankruptcy — has reinvested more than $1 billion in apartments, office buildings and other commercial property around the country already owned or financed by Lehman and facing varying levels of distress. One of those properties is a 21-story office building at 237 Park Avenue. In 2007, Lehman originated $1.23 billion in loans to finance the purchase of the tower by Broadway Partners, retaining $437 million of the debt on its own books. Lehman also has spent nearly $1 billion to pay off partners and creditors and reach other settlements that resulted in the return of real estate assets to the firm. By investing more money into these deals, Alvarez & Marsal is hoping to salvage the maximum amount from the $14.4 billion of commercial real estate on the bank’s books. However, the success of this strategy depends in many cases on property values rising, something that is far from certain, given the tumultuous real estate market and the country’s weak economic recovery. [WSJ] [more]

  • Lehman’s hotel REIT files for bank

    July 20, 2010 03:00PM

    A major hotel real estate investment trust and subsidiary of Lehman Brothers Holdings has filed for bankruptcy protection in New York, after buckling under $1.42 billion in debt, according to the Wall Street Journal. Innkeepers USA Trust currently owns more than 70 hotels across 19 states, many of which ran under widely known brand names like Marriott, Hyatt and Hilton. The Palm Beach, Fla.-based REIT aims to eliminate around $700 million worth of debt through the bankruptcy, experts say. The news comes on the heels of a rocky relationship with one of its brands, Marriott, which threatened to remove its name from 23 hotels in the REIT due to a perceived lack of upkeep. Innkeepers and Marriott ultimately struck a deal on June 25. [WSJ]