Lennar's New Homes Fetch 60% Less as U.S. Market Slump Deepens

That's how much Morgan Stanley Real Estate paid for an 80 percent stake in the 32 communities, 60 percent less than the price at which the properties were valued just two months earlier. That's also what some investors say they would pay for distressed land, condominiums, homes and whole developments, whether it's now or later this year.

`Eroding by the Minute'
Arsenault said he and his three partners may buy a block of about 50 new, unsold condominiums in Orlando, Florida. They have a price in mind and they're willing to wait until they get it: 40 cents on the dollar.

``There's a risk to buying too early in the downturn, but buying too expensive is our biggest pitfall,'' he said.

Companies such as Miami-based Lennar, the biggest U.S. homebuilder by revenue, need to generate cash to make up for slowing home sales, especially this time of year, said Vicki Bryan, a Friendswood, Texas-based senior high-yield debt analyst for Gimme Credit LLC.

``They sold land at 40 cents on the dollar and they're happy to get it,'' Bryan said. ``The value of land is eroding by the minute.''

WITH LENNAR?
MAYOR NEWSOM ANNOUNCES HISTORIC $82 MILLION FOR HUNTERS POINT CLEAN UP
California Political Desk



The California Political Desk provides information, news releases, and announcements obtained from communication and public relations offices throughout the state.

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California Political Desk
December 20, 2007
SAN FRANCISCO, CA – Mayor Gavin Newsom announced yesterday that the federal government has agreed to spend over $82 million on the cleanup of the Hunters Point Shipyard in the upcoming fiscal year.

“This is a huge victory for San Francisco in general and the Bayview Hunters Point Community in particular,” said Mayor Newsom. “With these funds in hand, the City will be able to continue moving forward with its plans to transform the long-shuttered Shipyard from a environmental blight on the community into a world-class location providing waterfront parks, thousands of jobs, affordable housing and a major clean technology campus.”


The federal funds will be used to prepare over 100 acres of land at the Shipyard for transfer to the City at no cost, including land slated for new housing, parks and approximately 25 acres for a potential site for a new stadium for the San Francisco 49ers

Carrot and the Stick?
Smoke and Mirrors?
Is Lennar still underwriting the SF Redevelopment Agency?
What is the Bay View Hunters Point Community Benefits worth NOW?
When does the Disposition development Agreement Change Again to Less for the City and bay View Hunters Point? Less Jobs? Less Low Income Housing or None? Less Apartments? Less Affordable Housing? Less Community Benefits?
Lets truly be honest and realistic