Journalist and writer Teri Buhl has put together an incredibly detailed look at Antares and the hedge funds who so recklessly rushed to rent in 100 W. Putnam Avenue (whose picture temporarily graces this blog’s masthead) for Dealbreaker.com. Duff Associates may be gone from the 4th floor penthouse it never occupied, but the money paid to get out of its lease lingers on. Similarly, Strategic Value Partners ($103 persquare foot) and Plainfield Asset Management ($122 per square foot) are still on as tenants – Plainfield finally moved in last week) even though they’re running those assets at negative rates of return.
After all the bad press Antares has received, including here, give them this: their sweetheart deal with Credit Suisse for the $160 million used to buy this building from UST is on such generous terms that they can afford to hold on and wait for a return of the commercial market. That assumes that there will be a return of that market, of course, but for now, with the rest of their projects in shambles and lost to creditors and angry investors, the Antares Boyz must be sleeping a little easier up in their side-by-side, liened and attached mansions on Mooreland Road.
UPDATE: This article in today’sWSJ on the impending disaster in commercial real estate raises a question I hadn’t focused on: what happens when its time to refinance the Credit Suisse bonds? As the article points out, even properties that are leased and bubbling along are going to have a hard time refinancing if the underlying value of the property has sunk. I’ll go back to those loan documents and if I find out when the notes are due, will report here.