Did the ConDocs get approved? I heard that they were having trouble getting variances signed off by the building department...

I don't know anything about this project. I just forwarded along the information that I received from a broker.

The broker is using the terms "Fully Entitled" and putting a value of $500K on the plans but is willing to give them away for free with the purchase of the land.

I thought that this was interesting considering our discussion of the value of entitlements and building plans last week.

$1.2 million for what, 5,000 SF lot? $240 / SF is a far cry from nearly $1,500!

To be fair, the CosmoSquare site is vastly superior to the BallPark Lofts lot in both size and location but it is hard to see how any appraiser is valuing it at $60 million let alone $88 million.

Did you know that Hanover offered the little old lady that owns the SRO between Hotel Indigo and Strata $8 Million for her 3,000 SF lot?! She will never see that kind of money again, with it being land locked and all!

I hadn't heard that but if it is true, she is a real dipshit. What was her reason to hold out? Have you seen the shoring in place to make sure that the building doesn't collapse?

I have contacts at The Mark and they pointed out a 35-50 year old blonde woman out to me the other day. She was monitoring the excavation. They thought she was the owner.

Greed is amazing sometimes. We were working with Centex 3 years ago to plan a project on the Basic Pizza bldg (Steve Berry), the hair salon and empty lot (Michael Witkin) and the old dry cleaner bldg. We were talking about prices of $400 psf for all of them plus a profit participation clause if the project was a grand slam. All of them held out. They won't see those prices again for a few years.

If ever. I heard the the lady's dream is to open a jazz club, but who knows. They are having to do internal shoring instead of friction ties because the lady wouldn't even sign a tie-back agreement. Wierd!

Well take that SDG left field! That's were you belonged was way out in left field! Simplon has 2 weeks to secure it's $ from it's many choices of lenders now and the tide has turned. One more hump to get over and then I can say, 'I told you so!'

What are you talking about? Why is it such a bad thing that a creditor is seeking payment on it's loan?

When you buy a note last minute, with the only intention of trying to steal a property for 1/3 of what's it's worth, your intentions are not honest and you are only out for yourself, screwing the little guy in the process. That's why.

Steal for 1/3? Read the financial disclosures for 7th & Market between the Related Company and CCDC. They are buying 55,000 SF, one bock north for $16.4 million. That is also entitled. They are also getting CCDC to finance the garage portion, and they don't have to build a new fire station. Why would CCDC sell the land to Related for that much if one block south the apraisal is $60 million? Because the cosmo apraisal is fraud, thats why. A little guy making an unwise investment is not a little guy getting screwed.

Fraud? Wow, that's your brilliant assessment? You obviously don't have the facts to make a legit judgement on this case but I guess the actual Judge did because he has allowed more time (the whole reason for Chapter 11), to be given to Simplon. This blog is rather disappointing as I thought I would find more professional people in the industry who I could rap with. Oh well.

Well, talking about the merits of a lawsuit is not very interesting. And my impression is that you're seeking like-minded persons to share your sympathies. I am not interested in either. Have you written/responded about any other topics here yet?

What did you tell us? All Simplon is doing is replacing one creditor with another. If they can actually scrape together the $18.1 million to pay off SDG, then they are in the same position (with a little more time). The new creditor will start the process again as soon as Simplon stops paying them.

You find it incredulous that there are investors out there trying to buy distressed debt in the hopes of making a profit. Are you naive?

Not naive, I know it happens but it doesn't mean I have to agree with it and neither did the Judge. Everyone is counting Simplon out but Chapter 11 is there to protect companies and there people in situations like these so the vultures can't come down to eat... not right away at least.
It's all about time, time to try and take a final shot at getting the project going again, to build it! I am not naive in knowing that if that doesn't happen soon it will be game over but again, it doesn't mean I have to agree with the tactics of SDG. If you were in court that day you would have seen what I mean as their lawyer was an aggressive little manipulator who tried to bully the judge... it didn't work.

Its a bad deal any way you look at it. Simplon borrowed too much money against the property, and now they can't pay it back. This thing is going to end bad one way or another. It always does when the financials are mismanaged.

I am glad I don't share your attitude about life and it's choices as it would depress the hell out of me. We will see what happens and why not hope for the best, the economy needs that more then it does the gloomy stuff.

Thanks for the posts but I am done here till we hear more on the 1st of May so I guess that gives you last word... make it count.

This blog is for anyone interested in development in San Diego, it is not designed exclusively for "professionals in the industry"

I value the insights of the insiders who can give updates on where projects stand, but the micro-analysis of intricate legal details being carried on by you and others are bringing this blog down. I'm starting to notice alot of the old bloggers are just dropping off

:slob:

While the insults are out of character for this blog, I don't have a problem with the legal discussion. Im actually a law student and am in 3 land use real estate classes. If I knew bankruptcy procedures I would have chimed in. As far as foreclosures go, the lenders are well within their rights here, and do not seem to be acting in a predatory manner. And if you wanna see a low level blog look at the Downtown LA blog. They actually cuss at each other over the blog and gay bash. I think it reflects the character of both cities. haha.

Sanders and Debate
 

Talking about cussing anyone have thoughts on Sanders' cussing out his opponent after the debate. How about thoughts on who would be better for Downtown or the city as a whole.