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To: cuemaster who wrote (482)

11/28/2012 1:53:12 PM

From: StockDung

Respond to of 487

Bankrupt 5th Avenue Partners LLC, Owners of the Sè San Diego Hotel
Along with Adjacent Building Housing the House of Blues,
Could be Put up for Sale

Estimates Claim Could go for $50 million, Significantly Less than the $150 million Development Cost

By Lori Weisberg, The San Diego Union-Tribune
January 7, 2011

The financially troubled owner of the tony Sè San Diego hotel, dogged by controversy since before it opened two years ago, wants to put the downtown high rise up for sale.

The upscale boutique hotel, along with an adjacent building in which the House of Blues is located, could fetch up to $50 million, according to one Southern California broker, although that is significantly less than the $150 million cost to develop the high-profile project

The owner, 5th Avenue Partners LLC, which filed for bankruptcy protection last June, is awaiting court approval to hire the brokerage firm, CB Richard Ellis, to handle the sale. However, it must first overcome objections raised by creditors who argued in a court filing this week that they had not been properly consulted on the sale process, which they say should occur as part of a bankruptcy reorganization plan.

The Sè San Diego hotel opened in December 2008 in the middle of a souring economy that ultimately forced the developer into bankruptcy.

In the meantime, 5th Avenue Partners remains hopeful that they can start marketing the Sè for sale this month.

“We feel (the creditors’ objection) is meritless on so many levels,” said attorney Marc Winthrop, who represents 5th Avenue Partners. “They’re feeling petulant they were left out of the decision. This property is worth far less than the amount of debt against it, so the proceeds from a sale could be paid to the lender, and there’d be no money left over, so what kind of reorganization plan could you do?”

Opposing attorney Ali M.M. Mojdehi pointed out that a suit aleady has been filed against the hotel lender on behalf of the creditors committee and many of the construction companies that worked on the Sè to establish priority over the bank once available funds are distributed.

“The debtor has sold out to the bank,” said Mojdehi, who represents the creditors committee. “We are not for sale and intend to push fror a sale process fair to all creditors, not just the bank.”

For the rest of the story including detailed property information please visit:
http://www.signonsandiego.com/news/2011/jan/05/bankrupt-downtown-hotel-may-be-put-up-for-sale/

Contact:

Lori Weisberg, Staff Writer
San Diego Union-Tribune
350 Camino de la Reina
San Diego, CA 92102
619-293-2251
lori.weisberg@uniontrib.com

	Visit AboutUs.org for more information about STEVEREBEIL.NET AboutUs: STEVEREBEIL.NET

	Registrant:	Make this info private
	5th Avenue Partners
	4300 Campus Drive
	Suite 214
	Newport Beach, CA 92660
	US

	Domain Name: STEVEREBEIL.NET

	Promote your business to millions of viewers for only $1.25 a month! Learn how you can get an Enhanced Business Listing here for your domain name. Learn More


	Administrative Contact , Technical Contact :
	5th Avenue Partners
	rudy@watermo.com
	4300 Campus Drive
	Suite 214
	Newport Beach, CA 92660
	US
	Phone: 949-717-2800

	Record expires on 03-Aug-2015
	Record created on 03-Aug-2007
	Database last updated on 04-Jun-2012

	Domain servers in listed order:	Manage DNS

	NS47.WORLDNIC.COM	205.178.190.24
	NS48.WORLDNIC.COM	206.188.198.24

	Show underlying registry data for this record

	Visit AboutUs.org for more information about STEVEREBEIL.NET AboutUs: STEVEREBEIL.NET

	Registrant:	Make this info private
	5th Avenue Partners
	4300 Campus Drive
	Suite 214
	Newport Beach, CA 92660
	US

	Domain Name: STEVEREBEIL.NET

	Promote your business to millions of viewers for only $1.25 a month! Learn how you can get an Enhanced Business Listing here for your domain name. Learn More


	Administrative Contact , Technical Contact :
	5th Avenue Partners
	rudy@watermo.com
	4300 Campus Drive
	Suite 214
	Newport Beach, CA 92660
	US
	Phone: 949-717-2800

	Record expires on 03-Aug-2015
	Record created on 03-Aug-2007
	Database last updated on 04-Jun-2012

	Domain servers in listed order:	Manage DNS

	NS47.WORLDNIC.COM	205.178.190.24
	NS48.WORLDNIC.COM	206.188.198.24

	Show underlying registry data for this record

To: cuemaster who wrote (482)	11/28/2012 1:56:17 PM
From: StockDung	Read Replies (1) \| Respond to of 487

Hotel bankruptcy sign of San Diego's future? [Posted: Jun 28, 2010 10:53 PM EDT Updated: Jul 07, 2010 1:18 PM EDT By News 8's Craig McKee What's going on behind closed doors at 5th Avenue Partners LLC, owner and operator of Se San Diego, has many wondering what the future holds for this upscale hotel. Steven Rebeil, Managing Member of 5th Avenue Partners, filed Chapter 11 bankruptcy before a court hearing Monday due to a $67 million default on outstanding loans. According to court papers, the filing blocks the bank from taking receivership of the hotel. In a release from the Public Relations Department of 5th Avenue Partners, the Hotel remains open and will continue operating to the highest level of standards. The statement goes on to say that a number of factors played a role in this decision, one of which dated back to 2007, while the hotel was still under construction. By December 2007 the general contractor was significantly over budget and in trouble. By April 2008 the general contractor had abandoned the project and removed all of its employees and equipment. In May 2008 Highland Partnership was terminated by 5th Avenue Partners. The company was able to re-contract with most of the sub-contractors to finish the project but this required the company funding nearly 30 million dollars that was the financial responsibility of the general contractor. Aside from the dramatically increased cost of construction the hotel opened for business in late December 2008, nearly a full year later than the original and intended opening date of December 2007. The hotel opened with much fanfare, but in a time where the country's worst recession in decades was gaining momentum, the hotel was in the right place at the wrong time. The down economy, lack of business and tourism, the hotels bottom line began to hurt. And the bank began knocking on their door. After being open for business for just five months the company's three-year construction loan with West LB AG bank matured and became due in full in May 2009. After opportunities to re-finance the construction loan became nonexistent, West LB AG filed a Notice of Default on the construction loan in March 2010, some 10 months after the loan expired. The financial struggle of 5th Avenue Partners could be a sign of what's to come for many San Diego businesses. Chief Economist for San Diego Association of Governments or SANDAG, Marney Cox says, what happened in the housing market is starting to pop up in our commercial market, to include the hotel industry. "You can take a look at hotel occupancy rates and throughout this recession they've continued to decline. They're usually in the mid seventies and today they're in the mid sixties and so they've lost ten percent occupancy that's across the board," he explained. With lower numbers of room occupancy, the laws of supply and demand don't play out in the hotel's favor. "We've seen a lowering of the room rates. Fewer people and lower room rates less revenue to the hotel," Cox said. While some hotel investors may have enough cash in reserves to get their property through the recession, Marney says companies not prepared find themselves in bankruptcy in the near future. "The similar trends that took place in the residential market look like they're beginning to unfold in the commercial market, including hotel, office, retail space," Cox says. "If they can't get some kind of relief from whomever holds the debt outstanding, the next step is to sort of reorganize." The issue will not be solved by next year, or the year after that, Marney says. He believes it could take three to five years to get things back to peak prior to the recession. He adds that the slow rebuild could have positive effects on everyone across the board, forcing both consumers and businesses to change the way they do business and how they handle credit in general

To: cuemaster who wrote (482)	11/28/2012 3:14:45 PM
From: StockDung	Read Replies (1) \| Respond to of 487

In 2007, when Dominic Magliarditi bought a Las Vegas property, it cost him $30.2 million. Just four years later, that same property would be sold for a song, at the low low price of $4.4 million. When Magliarditi was forced to foreclose on his property to National City Bank, the bank promptly sold the property for the bargain price of $4.4 million to Lightstone Acquisitions, Vegas Inc. reports. That equals a four-year decline of approximately 85 percent. huffingtonpost.com Las Vegas Property Sells For $4.4M After Being Bought For $30M In 2007 Huffington Post James Sunshine First Posted: 06/13/11 11:28 AM ET Updated: 08/10/11 06:12 AM ET [iframe style="WIDTH: 0px; DISPLAY: none; HEIGHT: 0px" id=atwAdFrame1 title=Ad height=1 marginHeight=0 src="http://www.huffingtonpost.com/_uac/adpage.html" frameBorder=0 width=1 allowTransparency marginWidth=0 scrolling=no divName="adsDiv1" mn="93315212" h="90" w="728" banId="\|" visibility="hidden" textAd="undefined"][/iframe] In 2007, when Dominic Magliarditi bought a Las Vegas property, it cost him $30.2 million. Just four years later, that same property would be sold for a song, at the low low price of $4.4 million. When Magliarditi was forced to foreclose on his property to National City Bank, the bank promptly sold the property for the bargain price of $4.4 million to Lightstone Acquisitions, Vegas Inc. reports. That equals a four-year decline of approximately 85 percent. In 2005, just before the peak of the U.S. housing market, few would have imagined such a dramatic decline in any real estate holding. But since the market began its free-fall, and with prices now declining for 57 months straight, there seems to be little chance of that soon turning around. During just the first quarter of 2011, for instance, housing prices fell by 4.1 percent, according to Standard & Poor's/Case-Shiller Home Price Indices. Las Vegas, and the Nevada area more generally, have been hit especially hard by the housing collapse. Just under 13 percent of Nevada homes were in "serious delinquency" in the final quarter of last year, more than twice the national average, reports the Las Vegas Review-Journal. And just in the year leading up to March 2010, real estate prices in Las Vegas fell by 5.3 percent alone. An increasing number of homeowners find that what they thought were their safe mortgages are underwater, meaning that they owe more on their mortgages than what their home is actually worth. The increasing number of foreclosures, which help drive down surrounding property values, is only exacerbating the problem. Approximately 28 percent of all American mortgage holders are underwater, reports Zillow. That, in turn, has added to foreclosure crisis that has created a mass inventory of empty homes in the United States. By May 2011, close to 13 percent of all homes in the U.S. were vacant, according to the Census Bureau But now that the market is bust, Nevadans are having to deal with an entirely new economic reality. "There's virtually no construction in the valley," said John Stater of Colliers International. Indeed, with the state's housing and construction industries going bust, the state has one of the highest unemployment rates in the country at 11.9 percent., according to the Bureau of Labor Statistics. Nevada's unemployment rate has not been in the single digits since December 2008.