Path: bloom-picayune.mit.edu!snorkelwacker.mit.edu!news.media.mit.edu!americast.com!usa-post Newsgroups: usa-today.real From: usa-post@AmeriCast.Com Organization: American Cybercasting Approved: usa-post@AmeriCast.com Subject: real Fri, Mar 27 1992 Date: Fri, 27 Mar 92 05:43:21 EST Message-ID: 03-62 0000 DECISIONLINE: Real Estate USA TODAY Update March 27-29, 1992 Source: USA TODAY:Gannett National Information Network LARGEST DEVELOPER RESTRUCTURES: The Super Bowl of real estate restructurings is ready to begin, and just about every investment bank and accounting firm on Wall Street wants to get into the game. Olympia & York Ltd., North America's largest real estate developer, is preparing to sit down with bankers including Citicorp, Credit Suisse and Sumitomo Bank Ltd. to work out a solution to massive debt problems. (For more, see special Olympia package below.) CITY GROUP HAS MORTGAGE PLAN: The Pittsburgh Home Ownership Program has announced an interest rate of 7.65% on mortgage loans. The program is to help low-income homebuyers meet down payment and closing cost requirements. PHOP is administered by the Urban Redevelopment Authority of Pittsburgh, which issues $14.4 million in revenue bonds to finance the program. About 400 homeowners can get mortgage loans from the proceeds. WEST TOPPED HOME PRICE LIST: The median price of homes sold in February was $129,200 nationwide, according to the National Association of Realtors. The West led the USA with a median price of $176,300. Median means half the homes in the area cost more, half less. The Northeast's median home price was $162,900; the South's, $112,900. Only the Midwest's median price was under $100,000, at $93,900. CALUMET PURCHASED AT AUCTION: Calumet Farm has a new owner. The fabled Kentucky horse farm was purchased at auction by Polish-born businessman Henryk deKwiatkowski Thursday for $17 million. DeKwiatkowski, who now owns the 770-acre main farm, said he would keep Calumet a horse farm, retain the name and colors and rehire the staff. "Not a whisker will be changed," he said. AUCTION IS TO PAY DEBT: The auction of Calumet Farm, which concludes Friday, was held to help pay off part of a $127 million debt owed creditors. Calumet, which has produced eight Kentucky Derby champions in its 60-year history, plunged into bankruptcy court last year. New owner Henryk deKwiatkowski will house many of his 200 horses there and will live there part time. He has homes in the Bahamas and Connecticut. ARIZONA LAND REPORTS INCOME: Arizona Land Income Corp., an independent real estate trust, Thursday announced earnings for the year ended Dec. 31. The company also announced earnings for the three months ended Dec. 31. Total income was $978,000 with a net loss of $2.9 million for the fiscal year ended Dec. 31. For the quarter, the company had total income of $54,071 and reported a net loss of $3.6 million. FIXED-RATE MORTGAGES STABLE: The rates for 30-year fixed-rate mortgages from the Federal Home Loan Mortgage Corp. were listed at 9.03% Thursday, unchanged from Wednesday but up from 8.88% the week before. They were at 9.59% a year ago. For 30-year adjustable-rate mortgages, the rates were 6.22%, unchanged from Wednesday but up from 6.04% the week before. A year ago they were at 7.44%. ARM INDEXES UNCHANGED: The one-year Treasury ARM index rates were listed at 4.73% Thursday, unchanged form Wednesday but up from 4.64% the week before. A year ago they were at 6.41%. For the 11th District ARM index, rates were at 6.002%, unchanged from Wednesday and unchanged also from the week before. A year ago they were at 7.858%. T-BONDS INCREASE: Treasury security rates for the 30-year bonds showed an increase Thursday, listing at 7.98%. That's an increase from rates of 7.94% Wednesday and up 0.02 from 7.96% the week before. A year ago T-bonds were at 8.24%. SPECIAL PACKAGE ON OLYMPIA: PROCESS LUCRATIVE FOR SOME: Olympia & York Ltd. is preparing to huddle with an international collection of bankers to work out its debt problems, a process likely to be as lucrative for the workout specialists as it will be painful for the three Reichmann brothers - Paul, Albert and Ralph - who control the Toronto-based firm. The trouble: Canary Wharf, a huge office project in London's East End. LONDON MARKET DEPRESSED: For more than a decade, the Reichmanns have been pouring money into Canary Wharf on the speculation that London will become the financial capital of Europe and the 4.7 million square feet they're building at Canary Wharf will fill. That bet may pay off, but right now the project is sucking up capital because the London real estate market is severely depressed. INVESTORS WOULDN'T ROLL OVER: To finance Canary Wharf Olympia & York borrowed heavily against New York and Toronto properties. The Reichmanns also have been able to raise funds in the commercial paper market. But some investors, rattled by rumors, refused this month to roll over $300 million of paper as it came due. The stakes are enormous; outside experts say the company's debt load may exceed $20 billion. (End of package.) Real Estate Editor: Beth Mann. (1-919-855-3491) Making copies of USA TODAY Update (Copyright, 1992) for further distribution violates federal law. This article is copyright 1992 Gannett News Service. Redistribution to other sites is not permitted except by arrangement with American Cybercasting Corporation. For more information, send-email to usa@AmeriCast.COM