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ParticipantSunstone purchased the W San Diego in June 2006 for $96 million from developers including Starwood Hotels, Gatehouse Capital and Multi-Employer Development Partners. The hotel carries a $65 million, fixed-rate commercial mortgage-backed securities loan with a 6.14 percent interest rate, which comes due Jan. 1, 2018. The mortgage principal translates to more than $250,000 in debt per room.
Sounds from that quote like Starwood at least owned a piece of it.
ParticipantA couple of interesting things about this story — first, that Starwood was smart enough to unload that hotel in June 2006, right at the top of the bubble. Second, that the REIT in default has enough cash to keep paying the mortgage, they’re just choosing not to.
San Clemente, Calif.-based Sunstone said its loan special servicer has declined the company’s attempts at renegotiating interest payments lower. Since Sunstone feels the W San Diego is now worth much less than what it owes, the company would rather turn it over to the bank than have hefty interest payments continue to drain cash from its balance sheet.
“While the company maintains more than adequate liquidity to support or repay this mortgage, we believe a conveyance of this hotel in settlement of the debt would be in the best interest of our stockholders,” Chief Financial Officer Ken Cruse, said in a statement.
Why should we expect individual homeowners to do anything different when they’re underwater on their loans?
ParticipantA couple of interesting things about this story — first, that Starwood was smart enough to unload that hotel in June 2006, right at the top of the bubble. Second, that the REIT in default has enough cash to keep paying the mortgage, they’re just choosing not to.
San Clemente, Calif.-based Sunstone said its loan special servicer has declined the company’s attempts at renegotiating interest payments lower. Since Sunstone feels the W San Diego is now worth much less than what it owes, the company would rather turn it over to the bank than have hefty interest payments continue to drain cash from its balance sheet.
“While the company maintains more than adequate liquidity to support or repay this mortgage, we believe a conveyance of this hotel in settlement of the debt would be in the best interest of our stockholders,” Chief Financial Officer Ken Cruse, said in a statement.
Why should we expect individual homeowners to do anything different when they’re underwater on their loans?
ParticipantA couple of interesting things about this story — first, that Starwood was smart enough to unload that hotel in June 2006, right at the top of the bubble. Second, that the REIT in default has enough cash to keep paying the mortgage, they’re just choosing not to.
San Clemente, Calif.-based Sunstone said its loan special servicer has declined the company’s attempts at renegotiating interest payments lower. Since Sunstone feels the W San Diego is now worth much less than what it owes, the company would rather turn it over to the bank than have hefty interest payments continue to drain cash from its balance sheet.
“While the company maintains more than adequate liquidity to support or repay this mortgage, we believe a conveyance of this hotel in settlement of the debt would be in the best interest of our stockholders,” Chief Financial Officer Ken Cruse, said in a statement.
Why should we expect individual homeowners to do anything different when they’re underwater on their loans?
ParticipantA couple of interesting things about this story — first, that Starwood was smart enough to unload that hotel in June 2006, right at the top of the bubble. Second, that the REIT in default has enough cash to keep paying the mortgage, they’re just choosing not to.
San Clemente, Calif.-based Sunstone said its loan special servicer has declined the company’s attempts at renegotiating interest payments lower. Since Sunstone feels the W San Diego is now worth much less than what it owes, the company would rather turn it over to the bank than have hefty interest payments continue to drain cash from its balance sheet.
“While the company maintains more than adequate liquidity to support or repay this mortgage, we believe a conveyance of this hotel in settlement of the debt would be in the best interest of our stockholders,” Chief Financial Officer Ken Cruse, said in a statement.
Why should we expect individual homeowners to do anything different when they’re underwater on their loans?
ParticipantA couple of interesting things about this story — first, that Starwood was smart enough to unload that hotel in June 2006, right at the top of the bubble. Second, that the REIT in default has enough cash to keep paying the mortgage, they’re just choosing not to.
San Clemente, Calif.-based Sunstone said its loan special servicer has declined the company’s attempts at renegotiating interest payments lower. Since Sunstone feels the W San Diego is now worth much less than what it owes, the company would rather turn it over to the bank than have hefty interest payments continue to drain cash from its balance sheet.
“While the company maintains more than adequate liquidity to support or repay this mortgage, we believe a conveyance of this hotel in settlement of the debt would be in the best interest of our stockholders,” Chief Financial Officer Ken Cruse, said in a statement.
Why should we expect individual homeowners to do anything different when they’re underwater on their loans?
June 4, 2009 at 9:39 AM in reply to: San Diego Fire Chief retires at 53 with $123K/yr pension for life… #410342ParticipantGreat idea. Imagine that 60-year-old chasing down the punk that carjacked you, or searching for your kids as the apartment complex burns down around them, that is, as long as his back doesn’t go out.
Puh-leeze. Not everyone in the FD or Police departments has to be doing the heavy lifting physical work. That’s what desk duty is for. Fire personnel have to do a lot of inspections and older guys are better for that anyway because they have more experience. As for cops, the experienced ones make better detectives because they’ve been there and done that. And trust me there are some 60 year olds that are unbelievably fit, especially here in San Diego.
June 4, 2009 at 9:39 AM in reply to: San Diego Fire Chief retires at 53 with $123K/yr pension for life… #410581ParticipantGreat idea. Imagine that 60-year-old chasing down the punk that carjacked you, or searching for your kids as the apartment complex burns down around them, that is, as long as his back doesn’t go out.
Puh-leeze. Not everyone in the FD or Police departments has to be doing the heavy lifting physical work. That’s what desk duty is for. Fire personnel have to do a lot of inspections and older guys are better for that anyway because they have more experience. As for cops, the experienced ones make better detectives because they’ve been there and done that. And trust me there are some 60 year olds that are unbelievably fit, especially here in San Diego.
June 4, 2009 at 9:39 AM in reply to: San Diego Fire Chief retires at 53 with $123K/yr pension for life… #410831ParticipantGreat idea. Imagine that 60-year-old chasing down the punk that carjacked you, or searching for your kids as the apartment complex burns down around them, that is, as long as his back doesn’t go out.
Puh-leeze. Not everyone in the FD or Police departments has to be doing the heavy lifting physical work. That’s what desk duty is for. Fire personnel have to do a lot of inspections and older guys are better for that anyway because they have more experience. As for cops, the experienced ones make better detectives because they’ve been there and done that. And trust me there are some 60 year olds that are unbelievably fit, especially here in San Diego.
June 4, 2009 at 9:39 AM in reply to: San Diego Fire Chief retires at 53 with $123K/yr pension for life… #410894ParticipantGreat idea. Imagine that 60-year-old chasing down the punk that carjacked you, or searching for your kids as the apartment complex burns down around them, that is, as long as his back doesn’t go out.
Puh-leeze. Not everyone in the FD or Police departments has to be doing the heavy lifting physical work. That’s what desk duty is for. Fire personnel have to do a lot of inspections and older guys are better for that anyway because they have more experience. As for cops, the experienced ones make better detectives because they’ve been there and done that. And trust me there are some 60 year olds that are unbelievably fit, especially here in San Diego.
June 4, 2009 at 9:39 AM in reply to: San Diego Fire Chief retires at 53 with $123K/yr pension for life… #411048ParticipantGreat idea. Imagine that 60-year-old chasing down the punk that carjacked you, or searching for your kids as the apartment complex burns down around them, that is, as long as his back doesn’t go out.
Puh-leeze. Not everyone in the FD or Police departments has to be doing the heavy lifting physical work. That’s what desk duty is for. Fire personnel have to do a lot of inspections and older guys are better for that anyway because they have more experience. As for cops, the experienced ones make better detectives because they’ve been there and done that. And trust me there are some 60 year olds that are unbelievably fit, especially here in San Diego.
June 4, 2009 at 9:20 AM in reply to: San Diego Fire Chief retires at 53 with $123K/yr pension for life… #410312ParticipantI don’t think the fire/police are overpaid, I just question whether or not it is reasonable for them to retire with a lifelong pension at 53 when the rest of us working schlubs are expected to work until we drop since our 401Ks keep getting decimated by market crashes every decade or so. Life expectancies are going up — maybe 60 would be a better retirement age for fire&police personnel?
June 4, 2009 at 9:20 AM in reply to: San Diego Fire Chief retires at 53 with $123K/yr pension for life… #410552ParticipantI don’t think the fire/police are overpaid, I just question whether or not it is reasonable for them to retire with a lifelong pension at 53 when the rest of us working schlubs are expected to work until we drop since our 401Ks keep getting decimated by market crashes every decade or so. Life expectancies are going up — maybe 60 would be a better retirement age for fire&police personnel?
June 4, 2009 at 9:20 AM in reply to: San Diego Fire Chief retires at 53 with $123K/yr pension for life… #410801ParticipantI don’t think the fire/police are overpaid, I just question whether or not it is reasonable for them to retire with a lifelong pension at 53 when the rest of us working schlubs are expected to work until we drop since our 401Ks keep getting decimated by market crashes every decade or so. Life expectancies are going up — maybe 60 would be a better retirement age for fire&police personnel?
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