Corua Bank Update for Montage Doesn't Look Good

by Mike Van Houten / Jul 27, 2009

Corus Bank update

From Bloomberg;

Lubert-Adler Partners LP, the Philadelphia-based private-equity firm, is among at least four investors weighing bids for Corus Bankshares Inc., the Chicago lender crippled by loans to build condominiums, people familiar with the matter said. Other bidders are said to include Fortress Investment Group, Barry Sternlicht of Starwood Capital, Related Companies developer Steve Ross and Colony Capital.

Lubert-Adler may take part in a bid for Corus assets or an offer for the entire bank, said the people, who asked not to be named because the talks are private. The Federal Deposit Insurance Corp. has indicated that the bank, which said this week it understated its first-quarter loss by $16 million, may be seized as soon as Aug. 6, the people said.

http://www.bloomberg.com/apps/news?pid=20601109&sid=aXoGP03Q__Xw

http://www.ft.com/cms/s/0/df425a2a-7a45-11de-b86f-00144feabdc0.html

So what does this mean for the Montage? Well, it's not good. L3 Development has stated numerous times the project doesn't pencil as a rental, and I'm pretty certain Corus Bank feels the same way, or they wouldn't have bothered to reduce prices by 30 to 40%. So how will the new owners fill the building up? It could even be turned into a hotel for all we know at this point.

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