Aura?

[doriankage]

Any word on the Aura property sale? Less than 12 hours left in the day....

[sugit]

Nope..I think all of us Sac people are awaiting the same news..

Also, all I think he has to just show is site control, which I believe would be an option to buy the land. Someone correct me if I am wrong..

[Web]

Nassi? Nassi? Nasssi?

quoted like ferris bueller......

[foxmtbr]

12 hours and one month left, you mean? Someone asked this in the Highrise Proposals thread, and innov8 proved (showed the article) that his date was extended to May 20.

[jwaters943]

I sure hope construction of the Aura goes better for you guys in Sac, than the Palladio has for us up here in Reno. The roof is still not finished and the whole project is severely over budget and more than a year behind schedule. I'm sure it doesn't help that they haven't moved any units in several months (prices are VERY high). On the bright side, the quality of construction appears VERY good and they've reportedly leased out two spaces on the bottom floor to Starbucks and Mikuni Sushi.

Link to more info. on the Palladio for those interested:

http://www.downtownmakeover.com/down...o/Palladio.asp

[urban_encounter]

Originally Posted by jwaters943

I sure hope construction of the Aura goes better for you guys in Sac, than the Palladio has for us up here in Reno. The roof is still not finished and the whole project is severely over budget and more than a year behind schedule. I'm sure it doesn't help that they haven't moved any units in several months (prices are VERY high). On the bright side, the quality of construction appears VERY good and they've reportedly leased out two spaces on the bottom floor to Starbucks and Mikuni Sushi.

Link to more info. on the Palladio for those interested:

http://www.downtownmakeover.com/down...o/Palladio.asp

Things are not going well for Craig Nassi as of late and that might be a larger part of the problem than we are privy to. He was recently removed from a Denver project just like he was in Reno on the Palladio. That could be why banks are hesitating on loaning him additional capital. Though admittedly Banks judge each project on an individual basis.

[innov8]

Craig Nassi BCN Development blog. http://craignassi.blogspot.com/

[urban_encounter]

Originally Posted by innov8

Craig Nassi BCN Development blog. http://craignassi.blogspot.com/

Interesting read...

Thanks Mike.

Hopefully he found his investors in NY.

[Phillip]

Things aren't going well for Nassi or for Corus, Aura's lead bank. Corus CEO Glickman states that Corus will continue to fund condo loans. I suspect they'll mostly be looking to fund very low risk projects. Not sure if Aura falls into that category. From Crain's Chicago Business, 4/20/07:

http://www.chicagobusiness.com/cgi-bin/news.pl?id=24660

Corus earnings down as past-due condo loans jump

The condominium shoe finally dropped on Corus Bankshares Inc.
by Steve Daniels, Crain's Chicago Business
4/20/07

Past-due condo loans in the first quarter jumped for the Chicago-based lender, which has focused almost exclusively on the condo-conversion and new-construction markets nationally over the past few years and has seen its stock punished as investors assumed the housing slowdown would take its toll.

Four ailing condo-conversion projects — two in southwestern Florida and one each in Phoenix and San Diego — helped boost Corus’ past-due loans to $205 million from $115 million in the fourth quarter and almost no past-due loans in first-quarter 2006. About 5% of Corus’ $4.7 billion in loans are now delinquent, up from virtually none a year ago.

First-quarter earnings of $26.4 million, or 46 cents per share, fell 39% from year-ago profit of $43.4 million, or 75 cents per share. Excluding a paper loss on a stock Corus holds in subprime lender Fremont General Corp. in California, Corus’ earnings would have declined 17% to $36.3 million, or 63 cents per share.

In a statement accompanying the quarterly earnings report, Corus CEO Robert J. Glickman warned that the bank hasn’t yet seen the worst of the condo slump.

“Evidence of this slowdown is clear from the decline in loan originations, the resulting decline in loans outstanding and an increase in problem loans,” he said. “It would not surprise us to see an even greater impact on earnings over the next several quarters, or even years, depending on when the market improves.”

But he said Corus would keep making condo loans. “We are very well positioned to capitalize on the eventual housing recovery that we are confident will occur,” he said.

Corus shares fell 3.5% in midday trading Friday to $16.69.

“I think the condo market will affect them more in ’07 than in ’06. And it will in ’08 as well,” said Peyton Green, a bank analyst at FTN Midwest Securities Corp. in Nashville, Tenn., who has a neutral rating on Corus’ stock.

But he said Corus has the financial wherewithal to ride out the downturn. “They still have a ton of capital. I don’t think there’s an issue there,” he said.

[benhol]

Here is some rather interesting (okay... bizarre) news about Nassi. I guess the New York Observer doesn't read any west coast news...

http://www.observer.com/20070416/200...cialbreaks.asp

[urban_encounter]

Originally Posted by Phillip

I suspect they'll mostly be looking to fund very low risk projects. Not sure if Aura falls into that category.

Condo loans are what Corus specializes in.


I doubt that they would consider a building 65%-70 pre-sold prior to the first shovel of dirt being turned, a "risk". But who knows??? I'm not in the business of loaning tens of millions for condos. I'm sure that they will look at the fact that new home sales in the region increased by 30% in the first quarter of 2007..... That may lead them to conclude that the market is starting to turn the corner?

Personally I'm more concerned about the second mezzanine loan that Nassi can't seem to secure form MeeCorp.

[Phillip]

Originally Posted by benhol

Here is some rather interesting (okay... bizarre) news about Nassi. I guess the New York Observer doesn't read any west coast news...

http://www.observer.com/20070416/200...cialbreaks.asp

That IS bizarre! (The article quotes Nassi as saying he's under contract to purchase five buildings in Midtown Manhattan.) Nassi seems to be jumping from this to that and never finishing anything.

[Phillip]

Originally Posted by urban_encounter

I doubt that they would consider a building 65%-70 pre-sold prior to the first shovel of dirt being turned, a "risk". But who knows??? I'm not in the business of loaning tens of millions for condos. I'm sure that they will look at the fact that new home sales in the region increased by 30% in the first quarter of 2007..... That may lead them to conclude that the market is starting to turn the corner?

Personally I'm more concerned about the second mezzanine loan that Nassi can't seem to secure form MeeCorp.

Almost all those Aura deposits were made almost a year ago now, and a lot has changed over that year. Some people who would have qualified for a loan a year ago won't qualify now. And some who still qualify have probably changed their mind. (At least one posted on this forum that he didn't want to wait any longer and purchased at 18th & L.)

I don't know how many "dropouts" there are, if it's a small number or large. But if Corus is serious about doing this loan they should be wanting to know how current that 65-70% number is, and someone should be contacting all those depositors from a year ago to verify that they're still in and still qualified. Maybe that's happening. If it's not then I'm skeptical that they'll deliver the loan.

[Web]

Nassi is exactly what you think he is......a developer......always looking for the next deal. If 5 dont happen maybe 1 will.........

[urban_encounter]

Aura tower developer seeks land option extension
By Terri Hardy - Bee Staff Writer
Published 11:44 am PDT Monday, April 23, 2007



The developer of the proposed Aura Condominiums downtown, still working to hammer out his financing for the project, has asked for more time to purchase land for the job.

Developer Craig Nassi wants to build a 39-story luxury condominium tower at 601 Capitol Mall but does not own the property. He had until last Friday to exercise his option to buy the land.

The owner of the site, developer David Taylor, said Monday that Nassi asked for an extension. Before that request is granted, Taylor said he wants to speak with Nassi's lenders and equity partners this week.

Nassi also wants a $10 million loan from the city to bridge a funding gap on the project.

City leaders, including members of the city council, say they see the venture as a key catalyst for development downtown.

City officials have said the developer will recieve a $132 million loan from Corus Bank and is shopping around for a lender for a second "mezzanine" loan.

[enigma99a]

Originally Posted by urban_encounter

Aura tower developer seeks land option extension
By Terri Hardy - Bee Staff Writer
Published 11:44 am PDT Monday, April 23, 2007



The developer of the proposed Aura Condominiums downtown, still working to hammer out his financing for the project, has asked for more time to purchase land for the job.

Developer Craig Nassi wants to build a 39-story luxury condominium tower at 601 Capitol Mall but does not own the property. He had until last Friday to exercise his option to buy the land.

The owner of the site, developer David Taylor, said Monday that Nassi asked for an extension. Before that request is granted, Taylor said he wants to speak with Nassi's lenders and equity partners this week.

Nassi also wants a $10 million loan from the city to bridge a funding gap on the project.

City leaders, including members of the city council, say they see the venture as a key catalyst for development downtown.

City officials have said the developer will recieve a $132 million loan from Corus Bank and is shopping around for a lender for a second "mezzanine" loan.

Nassi won't get this done. : ( I wish another developer would take over the project..

[sugit]

Originally Posted by urban_encounter

City officials have said the developer will recieve a $132 million loan from Corus Bank and is shopping around for a lender for a second "mezzanine" loan.

I should be the last person to blow someone up for spelling errors, but these people are paid to write..."i" before "e" except after "c"...we all learned that in 2nd grade

On Aura, I guess it's good news he is still working on it, but I just don't know what to think of this thing anymore.

[TowerDistrict]

i think at this point, the city might want to take this as an indication to how Nassi does business. I wouldn't be terribly confident lending him $10 million -

would you?

[foxmtbr]

Originally Posted by sugit

I should be the last person to blow someone up for spelling errors, but these people are paid to write..."i" before "e" except after "c"...we all learned that in 2nd grade

This proves that the Bee is written by first graders!

I've encountered so many grammatical errors in the Bee that I don't even notice them anymore.

[Phillip]

If Nassi has down payment money for a $260 million office building on New York's Park Avenue PLUS four other Midtown Manhattan buildings then why does he need high interest rate mezzanine financing or a $10 million loan from Sacramento to start Aura?


Here's a quote from the New York Observer article benhol posted 4/21:

Welcome to New York, Craig Nassi! The Denver-based developer might be an unfamiliar name to you today, but Mr. Nassi is someone you’ll know soon.

He told The Observer that he’s in contract to buy six buildings, including five in midtown and one at 315 Park Avenue South. Mr. Nassi confirmed the midtown south buy, but wouldn’t name the others. All in all, he said, he’s going to buy up to three million square feet in Manhattan.

So who’s Mr. Nassi? He’s 37, a luxury-condo developer turned office-space convert who prefers e-mail to phone calls and even has a blog (craignassi.blogspot.com).

He wouldn’t confirm the price for 315 Park Avenue South, but the 330,000-square-foot building likely went north of $260 million. And he said he would place an office for his company, BCN Development, inside this purchase.