LEM Mezzanine acquires distressed Dubai World – Union Square W Hotel

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Crains New York reports that LEM Mezzanine has acquired the Union Square W Hotel.  The W was acquired by Istithmar in 2006 for $285 million.  LEM bid $2 million for the debt on the hotel on Park Avenue South.  Istithmar had submitted a bid of $2.1 million but had also asked for certain changes to the loan covenants, sources said. After a closed-door meeting, LEM was named the winning bidder.

LEM acquired the mezzanine loan in March of 2007 and started foreclosure proceedings in last month after a series of defaults by the borrower.

The W New York Union Square is far from Dubai World’s only distressed property. The fund disclosed last month that it was struggling to make payments on a total of $26 billion in debts. Sources said that to raise cash it might consider selling some other Istithmar-owned properties in New York such as the Jumeirah Essex House on Central Park South and the Knickerbocker Hotel in Times Square.  The full story is here, http://bit.ly/6BJTzm

 We will have a fund discussing opportunities with distressed properties owned by Middle Eastern sources at our December 15th Real Estate Forum. 

 ********  IvyPlus Dec 15th Event – Real Estate Forum, http://bit.ly/7TMu3d*******

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