To: jeevacation@gmail.comneevacation@gmail.com];
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From:
Sent: Mon 10/10/2011 7.03:15 PM
Subject: Swanson status
Jeffrey
1. 1.Dan has a fallback position. Evidently TD Bank (V' mortgagee) and New Providence (2n0 mortgagee) will
extend until June 2012 if he prepays interest until then. That would mean a 6+ month extension for TD on
$21.2M (about $600,000) in interest and a 4+ month extension for New Prov on $5.3M ($275,000). (He prepaid
interest to the current maturities.) There would be no principal reduction. Dan would use the balance to maintain
the property, pay insurance and cover overhead and personal expenses. Dan doesn't have the $1,500,000 so
he asks if he could borrow that amount. No terms have been discussed. He can offer a second mortage on his
existing house and contiguous extra lot in Phipps Estates. They house and extra lot are mortgaged to Northern
Trust for $6M. He has the extra lot listed for $5.5 with Corcoran. He says they are worth $12M, I think $8M or
$9M. He did not offer a third on 1220.
2. 2. He prefers the $10M second on 1220 SOB until Nov 2012 @18% with a $1M kicker on sale which we have
been discussing.
3. 3. I haven't discussed with Dan the possibility of buying 1220 now at a discount. He just listed it at $74M but
told McCann to tell Moens and Condon 'a deal could be done in the $50s." He currently owes $26.6M. If he did
deal #2, he'd immediately owe $33.2M of which he'd have $2M+ to use for overhead and personal expenses.
He estimates the 'overhead" of insurance, maintenance, marketing, and taxes on 1220 to be $800,000 — so
he'd have $1.2M+ for personal expenses. If we offered him something around $30-$31, he'd have $4M+ now
and could survive in business. I believe we could sell for a net above $40M this season.
Let's discuss.
Paul
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