ericd1 Posted July 28, 2011 Share Posted July 28, 2011 I recall some discussion about FUR but it must have been associated with Berkowitz/Fairholme so I've started this section. Evidently Berkowitz is reducing his position in FUR. He sold 18% according the the latest 13G. http://www.gurufocus.com/news/138628/berkowitz-drops-spirit-aerosystems-reduces-rrr-and-fur FUR hit a new 52 week low today. It is down 6% YTD, p/e 7x yield 5.5%. Only three analysts, but still beating estimates by a wide margin. From my quick look it looks like its in the opportunistic range. Additional comments appreciated. Link to comment Share on other sites More sharing options...
dcollon Posted July 28, 2011 Share Posted July 28, 2011 Here's a link to the older discussion http://cornerofberkshireandfairfax.ca/forum/index.php?topic=2022.0 Link to comment Share on other sites More sharing options...
ericd1 Posted July 28, 2011 Author Share Posted July 28, 2011 Thanks for the link DC... Sanjeev - Is there anyway to combine the threads? Link to comment Share on other sites More sharing options...
biaggio Posted October 13, 2011 Share Posted October 13, 2011 http://www.bloomberg.com/news/2011-10-12/trump-to-pay-170-million-for-florida-s-luxury-doral-golf-resort-property.html?cmpid=yhoo "Donald Trump agreed to pay $170 million for Miami’s Doral Golf Resort & Spa, a luxury property put into bankruptcy earlier this year by hedge fund Paulson & Co. and Winthrop Realty Trust. (FUR)...After the Doral sale, the remaining resorts in the bankruptcy case will be the Grand Wailea resort in Hawaii, the Arizona Biltmore in Phoenix, the Claremont Hotel & Spa in Berkeley, California, and the La Quinta Resort & Club and Club at PGA West golf course in La Quinta, California. Morgan Stanley (MS)’s CNL Hotels & Resorts Inc. owned the resorts before the Jan. 28 foreclosure. The owners believe that the Doral offer implies a value for all the resorts “significantly” exceeding the $1.5 billion in debt, according to court filings." Any opinions how this will effect FUR? i.e how much did FUR invest? And how much of that implied value of $1.5B would go to FUR? Anybody know off the top of their head, as I am too tired to look around tonight. Link to comment Share on other sites More sharing options...
dcollon Posted December 28, 2011 Share Posted December 28, 2011 Just saw this in a filing On December 23, 2011, a newly-formed joint venture owned equally by subsidiaries Winthrop Realty Trust (“Winthrop”) and subsidiaries of Elad Canada Inc. (“Elad”) entered into an agreement with PNC Bank, National Association, as agent and PNC Bank, National Association, Bank of America, N.A., Eurohypo AG, New York Branch, Macquarie Bank Limited and The Northern Trust Company, as lenders, unaffiliated third parties, to acquire an approximately $145 million (inclusive of default interest) defaulted first mortgage loan (the “Loan”) for a purchase price of approximately $128.5 million, subject to adjustment based on reserve balances and additional advances under the terms of the documents relating to the loan. The Loan is presently in maturity default and has a stated interest rate of LIBOR plus 3.5% with a 5% default rate. Pursuant to the terms of the agreement, the joint venture provided a $20,000,000 non-refundable deposit and the transaction is scheduled to close on or before February 8, 2012. The Loan is collateralized by the Sullivan Center, a 942,000 square foot mixed use property located in Chicago, Illinois comprised of approximately 200,000 square feet of retail space and 742,000 square feet of office space. Occupancy, inclusive of executed lease agreements as to which the tenant has not yet taken occupancy is approximately 89% with respect to the retail space and 73% with respect to the office space for an overall occupancy of 77%. Anchor retail tenants under lease include Target department store and DSW Designer Shoe Warehouse In connection with entering into of the joint venture, subsidiaries of Winthrop entered into a limited partnership agreement pursuant to which the consent of both Winthrop and Elad are required for substantially all actions of the joint venture and for each of them to contribute one-half of all joint venture expenses including providing one-half of the deposit under the purchase agreement described for in the preceding paragraph. Link to comment Share on other sites More sharing options...
dcollon Posted February 6, 2012 Share Posted February 6, 2012 Winthrop Realty Trust Acquires $140.3 Million Mortgage Note at a Discount Through Its Joint Venture Monday, February 06, 2012 08:00:00 AM BOSTON, Feb. 6, 2012 (GLOBE NEWSWIRE) -- Winthrop Realty Trust (NYSE:FUR) announced today that its 50-50 joint venture with Elad Canada Inc. consummated the acquisition for $128.0 million of a $140.3 existing million mortgage loan secured by the 942,000 square foot, office and retail property located at One South State Street, in downtown Chicago, Illinois. The historic and landmarked property was designed by famed architect Louis Henri Sullivan and built between 1899 and 1960, served as the flagship for the Carson Pirie Scott department store from the early 1900's until 2007. Since 2007 the building has been redeveloped and presently contains 743,695 square feet of office space and 199,588 square feet of retail space. The retail component is 89% leased and pre-leased and will be anchored by Target and DSW Shoe Warehouse, both of which are scheduled to take occupancy later in the year. The office component is 73% leased and is anchored by The Art Institute of Chicago (157,337 square feet), the Illinois Department of Employment Security (242,830 square feet) and Walgreens E-Commerce Institute (48,061 square feet). Upon acquisition, the loan was restructured into a $100 million non-recourse mortgage loan provided by a third party lender, a $47.5 mezzanine loan (inclusive of additional advances for reserves, property expenses and transaction costs) held by the joint venture and a profits participation in the property in favor of the joint venture. The $100 million non-recourse mortgage loan has a three year term, prepayable without premium after 20 months, bears interest at 11% per annum, of which up to 3% accrues, and requires payments of interest only. The lender has also agreed to provide up to an additional $8.65 million in additional advances for tenant improvements, leasing commissions and capital expenditures. This loan is a bridge facility to be used for the completion of the property's lease-up. The $47.5 million mezzanine loan has a six year term, bears interest at 15% per annum, 5% of which accrues on a compounded basis, and requires payments of interest only. If the mezzanine loan is not satisfied at maturity or an event of default occurs, the borrower is required to pay an additional $18.0 million together with a 15% compounded return on such amount, which represents the discount on the purchase price paid by the joint venture together with accrued default interest and expenses. In addition, the joint venture has agreed to provide approximately $4.4 million to fund the costs associated with the completion of the two retail anchors, Target and DSW's build outs, as well as for 80% of additional tenant improvements, leasing commissions and capital expenditures not funded under the mortgage loan. Both the interest rate and compounded return are subject to adjustment as described below. In connection with the restructuring, the Winthrop-Elad joint venture was issued a 65% future profits participation. The profits participation is in excess of all amounts due under the mezzanine loan. If a $3.0 million principal payment is made on the mezzanine loan on or prior to December 31, 2012, the interest rate and compounded return are increased to 15.5% and the profits participation is decreased to 60%. Howard L. Michaels, the chairman of The Carlton Group, served as the exclusive debt and equity capital advisor on this transaction. Link to comment Share on other sites More sharing options...
biaggio Posted February 6, 2012 Share Posted February 6, 2012 Wow those 11-15% interest rates seem very high for our current zero interest environment. Does anyone know if that is typical financing for commercial real estate today? I own small amt of FUR, I dont understand why they would be doing this kind of financing. I might be reading it wrong. I guess they get the 15% int on the mezzanine loan. Link to comment Share on other sites More sharing options...
rogermunibond Posted February 7, 2012 Share Posted February 7, 2012 Freed's defaulted loan on Sullivan Center sold By: Alby Gallun December 28, 2011 - Sullivan Center. Photo from CoStar Group Inc. - Sullivan Center. Photo from CoStar Group Inc. (Updated Jan. 3) (Crain's) — A venture led by a Boston-based real estate investment trust is buying a defaulted $145-million loan on the former Carson Pirie Scott & Co. store on State Street, setting the stage for a potential showdown with building owner Joseph Freed & Associates LLC. Winthrop Realty Trust and its partner, Toronto-based Elad Canada Inc., have agreed to pay $128.5 million — 89 cents on the dollar — for the loan secured by the Sullivan Center, a 15-story landmark building at 1 S. State St. where Target Corp. plans to open a store in October, according to a filing Wednesday with the Securities and Exchange Commission. The Winthrop venture is buying the loan from a syndicate of banks including PNC Bank N.A., Bank of America N.A., Eurohypo A.G., Macquarie Bank Ltd. and Northern Trust Co., according to the filing. The loan is in default because a Freed affiliate failed to pay it back when it came due in March. The sale could be a precursor to a foreclosure suit on the property, though Winthrop and Freed also could work out a loan modification giving the developer more time to pay it off. “With respect to defaulted debt acquired by our firm, we keep all of our options open,” says Winthrop CEO Michael Ashner, declining to comment further. A Freed spokeswoman declines to comment. A foreclosure suit would add to an already long list of financial problems facing Joseph Freed, which has already lost the Block 37 retail development just up the street to foreclosure. More recently, Laurance Freed, president of the Chicago-based developer, was declared by a judge to be in contempt of court for resisting Bank of America's efforts to collect on a personal guarantee he provided to secure the Block 37 loan. Designed by Louis Sullivan and built at the turn of the 20th century, the Sullivan Center operated as the flagship store for Carson Pirie Scott until the department store chain shut it down in 2007. Freed has been try to fill the space with new tenants, with Target agreeing in February to lease about 125,000 square feet for a store there. The 942,000-square-foot building includes about 200,000 square feet of retail space, which will be about 89% occupied after Target and other tenants move in, and 742,000 square feet of office space, which is 73% occupied, according to Winthtop's SEC filing. The Winthrop joint venture has put down a $20-million non-refundable deposit for the loan purchase, which is expected to close Feb. 8, the filing says. (Note: This story has been updated to reflect that a Freed spokeswoman declines to comment and corrected to reflect that the SUllivan Center was built at the turn of the 20th century.) Read more: http://www.chicagorealestatedaily.com/article/20111228/CRED03/111229860/freeds-defaulted-loan-on-sullivan-center-sold#ixzz1leV0OonN Stay up-to-date on Chicago real estate with our free, daily e-newsletter Link to comment Share on other sites More sharing options...
bttmline Posted February 8, 2012 Share Posted February 8, 2012 biaggio-It is common for Mezzanine lenders to receive low to mid teen rates, especially on a transitional property that needs to be funded until tenants are paying rent. There aren't many mezzanine lenders left because most were funds that blew up or are winding down from fundraising in 2005-07 range. It is considered debt, but really more like equity with a preferred return.baggy Link to comment Share on other sites More sharing options...
biaggio Posted February 8, 2012 Share Posted February 8, 2012 biaggio-It is common for Mezzanine lenders to receive low to mid teen rates, especially on a transitional property that needs to be funded until tenants are paying rent. There aren't many mezzanine lenders left because most were funds that blew up or are winding down from fundraising in 2005-07 range. It is considered debt, but really more like equity with a preferred return.baggy Thx bttmline. I am used to FUR being paid these types of int rates, and i was looking at it like FUR was paying the mezzanine rates as opposed to the property Link to comment Share on other sites More sharing options...
dcollon Posted March 1, 2012 Share Posted March 1, 2012 Attached are the results for 12/31/11 in case you missed themFUR_12.31.11.pdf Link to comment Share on other sites More sharing options...
Myth465 Posted March 21, 2012 Share Posted March 21, 2012 Whats the boards current thoughts on Winthrop? My sell was well placed about 2 years ago, the stock is still under that level. I am guessing IV has continued to grow though. I am pressed for time now, and need to hold stocks which will compound over the long term. This has brought me back to FUR. Ansner probably has good uses for the cash, but I dont like that he continues to raise money at high rates. Selling debt like securities at 10% makes it tough to make money. I know the returns from the assets will likely be in the 15%+ range but its tough. Link to comment Share on other sites More sharing options...
alertmeipp Posted March 22, 2012 Share Posted March 22, 2012 For me, it's a cheap and safe way to "play" the real estate space. Very small position for me now as I trim quite a bit last few months. Link to comment Share on other sites More sharing options...
biaggio Posted May 4, 2012 Share Posted May 4, 2012 Quarterly numbers out http://www.sec.gov/Archives/edgar/data/37008/000119380512000837/e609663_ex99-2.htm http://www.sec.gov/Archives/edgar/data/37008/000119380512000837/e609663_ex99-1.htm Link to comment Share on other sites More sharing options...
fuluvu Posted November 1, 2012 Share Posted November 1, 2012 Fur reports good quarter and announces share buyback. It currently trades at 80% of NAV. http://finance.yahoo.com/news/winthrop-realty-trust-announces-results-120000724.html Link to comment Share on other sites More sharing options...
Myth465 Posted November 1, 2012 Share Posted November 1, 2012 I am actually looking at FUR again. Havent owned in 2 years. I like the Times Square deal and the loan platform they have is really juicing earnings. Will listen to the call. Link to comment Share on other sites More sharing options...
txlaw Posted November 1, 2012 Share Posted November 1, 2012 I am actually looking at FUR again. Havent owned in 2 years. I like the Times Square deal and the loan platform they have is really juicing earnings. Will listen to the call. Me too, Myth, me too. I haven't personally owned for a while, but I have kept in my parents' account since I started accumulating a while back. Link to comment Share on other sites More sharing options...
PlanMaestro Posted November 1, 2012 Share Posted November 1, 2012 I am actually looking at FUR again. Havent owned in 2 years. I like the Times Square deal and the loan platform they have is really juicing earnings. Will listen to the call. Me too, Myth, me too. We are legions, below $10 is a bargain. The SoCal mortgage was splendid… (Gramercy was involved in that restructuring too so I'm very familiar with it). Link to comment Share on other sites More sharing options...
Myth465 Posted April 29, 2014 Share Posted April 29, 2014 Looks like they are done without creating much value.... http://finance.yahoo.com/news/winthrop-realty-trust-seek-shareholder-125000158.html Interesting... I did well owning FUR, interesting end though. Link to comment Share on other sites More sharing options...
txlaw Posted April 29, 2014 Share Posted April 29, 2014 I haven't owned in a while, but I have been following. Someone actually asked a question about liquidating on the last CC. I guess they decided to go ahead and do that. It seems like the REIT structure wasn't that great for doing all these portfolio shuffling deals because they had a limit on asset dispositions. That's why they were forced to issue equity and why their investors lost trust in them. Which has kept the share price depressed. The 2013 letter has been posted: http://investor.winthropreit.com/index.cfm It doesn't mention liquidation, so it must have been released prior to this announcement. Link to comment Share on other sites More sharing options...
JAllen Posted November 17, 2014 Share Posted November 17, 2014 Anyone following the liquidation? We're about done with a post about it, but we thought we'd check in with others too. There's about an 8-9% discount from the currently estimated liquidation value. Link to comment Share on other sites More sharing options...
bargainman Posted November 18, 2014 Share Posted November 18, 2014 Any idea how long it will take? the 10q seems to indicate upto 2016... "With the approval of the plan of liquidation, we will seek to sell all of our assets with a view towards completing the liquidation by no later than August 5, 2016" http://investor.winthropreit.com/secfiling.cfm?filingID=1193125-14-413500 That's a while to wait for that kind of return... Link to comment Share on other sites More sharing options...
JAllen Posted November 18, 2014 Share Posted November 18, 2014 I agree, except that the distributions start in January. Link to comment Share on other sites More sharing options...
JAllen Posted December 2, 2014 Share Posted December 2, 2014 Compass Point, a research firm came out with a $21/share liquidation value estimate. http://www.streetinsider.com/Analyst+Comments/Compass+Point+Starts+Winthrop+Realty+Trust+(FUR)+at+Buy,+Sees+$21+Liquidation+NAV/10060440.html Also, my firm wrote up the Winthrop's liquidation last week. http://jallencapitalmanagement.com/posts/winthrop-realty-fur-liquidation.html Link to comment Share on other sites More sharing options...
JAllen Posted December 3, 2014 Share Posted December 3, 2014 Winthrop just sold an office building for $85M for $41M net proceeds. This is $6M more than FUR was projecting just six weeks ago and is one of the reasons I think the total distributions will be more than $18.35 as I mentioned in my post above. http://investor.winthropreit.com/ReleaseDetail.cfm?ReleaseID=885882 That's another $1.25/share that could be distributed in January. Current estimated January distribution is: + $41M - today's sale + $34M - 9/30 cash on balance sheet + $19M - half of the total net proceeds mentioned in this PR that occurred after 9/30 = $94M - cash at 12/31 (assuming no material December sales) – $10M - mandatory senior note reserve – $7M - I assume they'll leave some cushion above $10M = $77M - able to be distributed at 12/31 ÷ 36.425 shares = $2.11/share able to be distributed in January 36.425 shares out Link to comment Share on other sites More sharing options...
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