Replies to post #95190 on JP 3E Holdings Inc (JPTE)

[Kool Aid Man]

Commercial real estate values "ticking time bomb"

https://www.politico.com/news/2024/09/02/office-property-values-fed-00174697

How does CR values/ leverage compare to the sub-prime disaster of 2007?

As far as housing goes, even though rents are rising are they enough to cover increases in costs (insurance, repairs/ maintenance, utilities, taxes and interest rates/ debt service)?

Page 15 FIXED ASSETS: Land & Buildings ( see Note 9. ) $18,232,526 (Note: Park values Bloxcross at $7 million more than 510 Hamilton St)

Long Term Bank Loan (see Note 11.) $22,992,544
https://www.otcmarkets.com/otcapi/company/financial-report/417481/content

Page 22

Note 11. Long Term Bank Loan
The increase in Long term bank loan - notes payable of $22,992,544 as of September 30, 2024 is from
>>Hamilton Associates LLC<<.

https://www.otcmarkets.com/otcapi/company/financial-report/417481/content

So Park took out a $22,992,544 loan to either buy or pay off an asset he says is worth $18,232,526. That's a $4.76 million hole.

[dukeb]

KAM provided a link to an on-line article. The Wall Street Journal ran a piece a couple of months ago about apartment building owners in the southern USA that are walking away from properties and letting the bank foreclose. Rents are softening because of oversaturation, operating costs are rising and interest rates are stubbornly high. That's a triple whammy for anyone who has leveraged their portfolio which is likely the case with many of these projects.

In most of New Jersey (can't comment specifically about the Hamilton project area) the apartment rental market continues to be crazy strong. "Luxury" buildings fill up almost immediately with rents on a 1 bedroom approaching $ 3,000 a month. I've seen new 3 bedroom townhomes renting for more than $ 6k a month. None of these are student housing through which I believe was the target market for Hamilton Street.