Tuesday, December 30, 2008

Ya Got Trouble at Bay Ridge, Middletown

I've blogged a number of times on the troubled real estate market here. We've got troubles- right here in River City. Ooops, wrong town, wrong area, wrong era; but who could resist?

I had dropped my link for the blog "Bay Ridge at Forest Ave." awhile ago as it seemed dead. Silly me. But with the condo developer now pressing for a change in residency rules, the blog has taken on a new life & even been quoted in the NDN.

My opinion? That's one baby going down. They never had much chance when they started- too late. The original owner (Franklin Simon Co.- developers out of Braintree) helped form "Bay Ridge Development" with Oldport Homes- Eric Johnson out of Portsmouth. This was financed by Brookline Bank of Brookline, MA and Bank Newport of Newport, RI. (source). So how solid is this bank? They say VERY, but profits say otherwise. BankNewport's profits are also down. The question is, how long will they wait before pulling the plug? Banks like to be repaid AND make profits.

The primary question is how firm is the current financial backing? I'm guessing not very in the current banking world. Going the senior development route never made much sense, but Simon's did get someone else to do it, didn't they? Ah, the blessing & curse of living in "interesting times."

Check out the website for updates. And remember, if they're in trouble, we'll all feel the pain. Think tax proceeds for one example.

Here is Matt Sheley's NDN article. Gee, sometimes we bloggers are downright useful, aren't we?

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