Hancock Tower foreclosure a pure Greenwich play

Almost everyone who played any role in the fall of Boston’s John Hancock Tower seems to have come from Greenwich. This Reuters story lays out the players nicely – who lost (Greenwich’s Scott Lawler and his Broadway Partners) who won (Chip Kruger, founder of Greenwich capital who sold out to RBS and started Five Mile Capital) and who won by peddling the junk to third parties but still went belly up – Lehman Brothers, naturally. I can’t figure out how much, if anything, Kruger’s old firm GC lost but they were lenders on the loan, too. Excellent article for those of us who wouldn’t know a mezzanine loan unless it bit us. This one certainly bit Mr. Lawler, who, besides losing $500 million or so on this deal, is currently trying to unload Victor Borge’s former yard on Field Point Circle and a failed building project in Khakum Wood, both below cost. If you smell blood in the water, look at one of those places first.

4 Comments

Filed under Uncategorized

4 responses to “Hancock Tower foreclosure a pure Greenwich play

  1. anonymous

    Trading price of that FPC dirt should be amusing…useful modern pricing benchmark for allegedly scarce dirt a couple doors down from Eddie, Ray and Paul

    Lots of hedgies can easily write a check for supposedly desirable FPC land; but most are shrewd guys who hate to spend a buck more than needed…will be incessantly mocked by their peers if they are the sucker “overpaying” in this illiquid, discretionary market for luxury housing

  2. wally

    I know that Lawlor paid north of the current ask on the FPC property, but I seem to remember that when the Borge estate first sold the property to the first holder (not Lawlor) in approx. 2003/ 2004 time frame it traded for something like $14M.

    • christopherfountain

      Ferari (sp) did, Wally, but he flipped it to Lawler for $25 million a few years later, after he lost his battle to subdivide it.

  3. GCM old timer

    Chip was not the founder of Greenwich Capital. It was Ted Knetzger and Bill Rainier. He was just the co-CEO at the time that RBS took control of Natwest, who was the owner of Greenwich Capital at the time.