With the $190 million Miami land deal scheduled to close next week, it's time for another round of speculation about what will happen.
If the deal doesn't close, McClatchy is entitled to a $6 million termination fee on top of the $10 million already collected.
Looks like one of three things will happen: (1) the deal will close; (2) McClatchy will agree to extend escrow another six or twelve months; or, (3) McClatchy will take the $6 million termination fee and run.
Under one scenario being bandied about, if the deal doesn't close next week, McClatchy will take the $6 million and package the parking lot with some bayfront property, then put it on the market at a much higher price.
That might sound good but it would surprise me: due to its weakened condition, McClatchy is not bargaining from a position of strength and might not have the stomach for another big real estate deal.
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6 comments:
LOL, at a much higher price. They couldn't sell it for the price that they had during the boom. Who the hell would ever believe they could get more now? Especially when the downtown property around it is going for a fraction of what they are asking.
"I've been told that if the deal doesn't close next week, McClatchy will take the $6 million and package the parking lot with some bayfront property, then put it on the market at a much higher price."
Been told by whom? Some blog post on McClatchy Watch? Do you have the nuts to reveal the source or even a bit of detail about their veracity? Or will juicy innuendo or blog-speculation suffice?
1:19 AM I think you know the answer to the last question.
The only other "bayfront property" would be the ground under the Miami Herald building itself.
The land under the building is what will be packaged and sold, along with the parking lot space. This is why the deal will close, the land on the bayfront, underneath the building, is what will go. There is no piece of property in South Florida more attractive to developers.
Another scenario is that they might close the deal but reduce the price per acre to be in line with current market reality.
FYI, the buyer's right of first refusal for the bayfront land under the Herald building was eliminated in the last negotiation for an extension.
Also, it will be a l-o-o-n-g time before anyone is willing to stick their neck out to buy the Herald building property in this economy and with lending at a standstill.
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