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Thread: Neverland Ranch and Santa Barbara Vineyard Owner Behind Nearly $2 Billion on Loans

   
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    Default Neverland Ranch and Santa Barbara Vineyard Owner Behind Nearly $2 Billion on Loans

    Billionaire Investor and Trump Donor Thomas Barrack Jr. Seeks COVID-Related Financial Relief

    Neverland Ranch and Santa Barbara Vineyard Owner Behind Nearly $2 Billion on Loans


    By Nick Welsh
    Tue Sep 15, 2020 | 12:30pm
    Thomas Barrack Jr., Santa Barbara vineyard and Neverland Ranch owner, polo padrone, investment capital mogul, and Trump consigliere, has reportedly been lobbying the Trump administration for COVID-related financial relief, having gotten nearly $2 billion behind on loans he took out to buy what the New York Times described as a “collection” of 160 hotels.

    Barrack ran Trump’s Inauguration Committee and donated $271,000 to Trump’s election committee in 2016. It was Barrack who introduced Trump to now-disgraced political consultant Paul Manafort — who briefly ran the Trump campaign and is now serving a seven-and-half-year sentence for loan fraud and a host of financial transgressions summed up by the federal judge who imposed the sentence as “gaming the system.”
    Barrack is one of several big-time Trump donors who are now lobbying Treasury Secretary Steven Mnuchin to extend the boundaries of federal COVID relief to include large commercial investment enterprises. Such relief would require congressional approval, and to date, Congress has shown no inclination to oblige. According to reports in the Times, there’s reluctance even from some within the Treasury Department who worry about squandering public tax dollars on companies, known as “zombies,” that have little chance of recovering.
    https://www.independent.com/2020/09/...ancial-relief/

    Here's the Follow-up story:

    Colony Capital Sells Six Massive Hotel Portfolios, Unloads $2.7B in Debt
    Deal with Highgate includes 197 hotel properties
    BY
    GREG CORNFIELD SEPTEMBER 24, 2020 6:35 PM

    Colony Capital has sold almost 200 hotels to hospitality management firm Highgate in exchange for $67.5 million and the assumption of $2.7 billion in debt.

    The deal included six portfolios with 22,676 rooms across 197 hotel properties, Colony announced today. The deal is a continuation of the firm’s pivot to focus exclusively on digital infrastructure, as well as a solution to the struggles facing the hospitality industry. The hotels span several states, including California, New York, Texas and Nevada.
    In July, Colony announced a $1.2 billion data center investment in Vantage Data Centers as the firm hopes to position itself as the only global REIT that owns and operates every part of the “digital ecosystem.” This time last year, Colony sold its industrial operating platform to Blackstone for $5.7 billion, which was a major landmark in the transition.

    Nareit US Real Estate Index Series and JLL research recently reported that the lodging and resorts sector nationwide has been the worst-performing by far due to coronavirus in terms of total returns after the second quarter. But compared to all other major assets, data centers have shown the best positive returns in that time.

    However, Colony reported a net loss of $2 billion in the second quarter, and, earlier this year, the firm defaulted on $3.2 billion in hotel loans, according to L.A. Business Journal. Early in the pandemic, Colony’s executive chairman and former CEO, Thomas Barrack, predicted the REIT would struggle and said commercial mortgages were on the brink of collapse. The firm’s hotel exposure is filled with CMBS loans that were hitting the fan amid the global crisis. Colony cited “strategic benefits of exiting the hospitality business” in the announcement of the hotel deal with Highgate.

    “Despite the unprecedented disruption in hospitality over the past six months, we remain bullish on the long-term secular trends in our industry,” Mahmood Khimji, co-founder of Highgate, said in a statement.

    Colony Capital CEO Marc Ganzi said the firm is delivering on its commitment to dispose of non-core assets. The transaction is expected to close in the first quarter of 2021.

    Earlier this week, the high-end Luxe Rodeo Drive Hotel in Beverly Hills closed for good due to financial strains brought on by the coronavirus shutdowns. In New York City, hotel sales plummeted 70 percent this year, and Manhattan’s 478-room Hilton Times Square will close in October.
    L.A.-based Colony Capital manages a $46 billion portfolio, including over $20 billion in digital real estate investments through Digital Colony, its digital infrastructure platform. Highgate has more than $10 billion of hospitality assets under management.
    Moelis & Company served as financial adviser to Colony, and Willkie Farr & Gallagher LLP served as legal counsel. Latham & Watkins LLP served as legal counsel to Highgate.

    https://commercialobserver.com/2020/...s-hospitality/
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    Default Re: Neverland Ranch and Santa Barbara Vineyard Owner Behind Nearly $2 Billion on Loans

    Oh the irony 🤭

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    Default Re: Neverland Ranch and Santa Barbara Vineyard Owner Behind Nearly $2 Billion on Loans

    Someone asked me to provide a summary of the above articles about Thomas Barrack.
    Here it is:


    Thomas Barrack and his Colony Capital are deep in debt:

    Colony reported a net loss of $2 billion in the second quarter, and, earlier this year, the firm defaulted on $3.2 billion in hotel loans, according to L.A. Business Journal. Early in the pandemic, Colony’s executive chairman and former CEO, Thomas Barrack, predicted the REIT would struggle and said commercial mortgages were on the brink of collapse. The firm’s hotel exposure is filled with CMBS loans that were hitting the fan amid the global crisis. Colony cited “strategic benefits of exiting the hospitality business” in the announcement of the hotel deal with Highgate.


    Thomas Barrack Jr., Santa Barbara vineyard and Neverland Ranch owner, polo padrone, investment capital mogul, and Trump consigliere, has reportedly been lobbying the Trump administration for COVID-related financial relief, having gotten nearly $2 billion behind on loans he took out to buy what the New York Times described as a “collection” of 160 hotels.


    Well, he couldn't get the COVID-19 related financial relief.
    So, he did the following:

    Colony Capital(who is Thomas Barrack)has sold almost 200 hotels to hospitality management firm Highgate in exchange for $67.5 million and the assumption of his $2.7 billion in debt.

    In addition, Colony Capital is getting completely out of the hotel and hospitality business.

    Last edited by CherubimII; 29-09-2020 at 10:19 PM.
    God, I thank you for allowing Michael to continue to watch over his children:

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    Default Re: Neverland Ranch and Santa Barbara Vineyard Owner Behind Nearly $2 Billion on Loans

    So....um..... I'm not understanding what this has to do with mj or Neverland. I thought Neverland was still for sale anyway

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