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Jay-Z, After Becoming Latest Casualty Of New York CRE Collapse, Sues Highland Capital
The latest casualty of New York's resurgent (not) commercial real estate market is rap mogul Jay-Z, who had previously guaranteed a $52 million loan for a Chelsea hotel, which subsequently has defaulted and is holding the artist as the responsible party for accrued interest. As a result, Jay-Z is lashing out, and in turn is suing defunct hedge fund Highland Capital (maybe he should have at least picked an adversary that can pay him), which last time we checked was still trying to offload second-lien debt at par plus. Bloomberg reports: "Carter, in his complaint filed yesterday in federal court
in New York, claims Highland and co-defendant NexBank SSB are
attempting to “bleed” from him funds in excess of those he and
two other men pledged to pay when they guaranteed the non-
principal obligations of a company planning to build a hotel in
Manhattan’s west side neighborhood of Chelsea."
In a nutshell, this appears to a be a case about who the end-guarantor on a loan is. To wit:
“In August 2007, a company controlled by Mr. Carter
borrowed $52 million as a loan to purchase Manhattan property
for a future boutique hotel,” Nina Devlin, a Highland
spokeswoman, said in an e-mailed statement yesterday.The loan, held by funds managed by Highland, matured in
August and is in default, Devlin said.“Highland Capital Management believes the claims asserted
by Mr. Carter are meritless and will vigorously defend itself
and intends to pursue the obligations owed to Highland’s
investors,” she said.
Jay-Z does not see things quite this way:
Highland and NexBank acted in bad faith when they declined
to clear Carter and his fellow guarantors of their obligations
after receiving a deed in lieu of foreclosure on the property,
according to the complaint.The rap star is seeking a declaratory judgment that he has
met those obligations. He’s also seeking damages of more than
$3.7 million for the additional interest and other costs
incurred while still being held liable under the agreements.
As this is hardly an isolated incident, with numerous celebrities trying to pimp themselves out even more at the peak of the NY housing market, and likely acquiring now worthless clubs and hotels, with hedge funds all too eager to strip these naive ladies and gentlemen of their money, we are likely to soon ee numerous other such lawsuits. And when Hollywood's celebs start squealing against the Wall Street creme of the New York market top crop, you know that the NY Mags and NY Posts of the world are going to have a field day when going through the various discovery motions. Never too far behind in the mudslining department, we will present some of the filings associated with this case as soon as we uncover anything extra juicy on either Dondero or Carter.
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- The Fundamentals Behind CRE - Part 1
Like Jay-Z, I am furious!
With CRE, how can you go wrong?
I don't get it. Real estate - just like the stock market - NEVER goes down.
Who is Doug in these lyrics?
This is la familia / I'll explain later
But for now let me get back to this paper
I'm a couple bands down and I'm tryin' to get back
I gave Doug a grip, I lost a flip for five stacks
Yeah I'm talkin' five comma / six zeros / dot zero
http://www.youtube.com/watch?v=yVA-xTBeHyM
Hey Mr Carter, where you been? For those of you who are not familiar with HOVA, he is "a mason" (Run This Town) he is in "la familia" (Run This Town) and he calls himself "Rockafella" (all the time). Dude tricked millions into buying the agenda. I hope you burn in HELL Mr Carter.
This is karma Mr Carter!
Oh, no you DI'n't!
Oh yas he D-hid!
nutha sucka MC bites the dust
Yo' mutha, he be hedged by Hyland with a out uf dah monee equity layer own a subprime CDIO+ deal, so whut be dee probem heah? You cap hiz zaazz zo u cap de trade?
+1 LOL
+1
Just in case someone doesn't follow you:
http://vigilantcitizen.com/?p=1948
j-hova forgot crowley died penniless with a needle of smack in his arm
Thank you, WaterWings. People have GOT to know what these dudes are all about!
And by that I mean the spiritual dark side!
Hey wanna-be gansta, meet the real gangsters. LoL.
I once heard you have to have street cred's to be a rapper. Meaning you did not graduate from high skool....
Time to put Beyonce on Craigslist.
"Hey wanna-be gansta, meet the real gangsters."
+1
Hey wanna-be gansta, meet the real gangsters.
Best line of the week! Gonna steal it and impress my non-ZH-reading family. :-D
"Hey wanna-be gansta, meet the real gangsters."
I agree with the others: great line.
HA! wonder if he'll keep performing Empire State of Mind on his tour...more like Got Jacked City
no he ain't no mason, just another stooge of the power elite, beyonce better start payin his billzzzzzzzzzzzz
i don't believe he has ever called himself "Rockafella". show me one lyrics from his entire career where he did. I have been listening to Jay-Z since 1996.
Roc-a-fella WAS the name of his record label for most of his career, though. is that what you meant? Now his label is "Roc-Nation".
And that's a RAP!
ROFLMAO!
There has been some absolute hysterical comments today on ZH, keep it up!
And that's a "banksta" RAP . . .
seems like he has more than 99 problems
I guess money IS a thing when you're in an empire state of mind
Jigga what?
but a bitch ain't one! LOL
It's a hard knock life, yo. Time to leverage the Bentley and pawn the jool-ray.
Entertainers and their money. You know rap. It made you very rich. Stick with that.
Hilarious / When times are good, everyone wants more and more. They tell their friends, relatives, even their enemies. But, whenever they hit their first roadbump -- call your brother-in-law attorney and get him to sue someone. This is another great Wall street example of "Greed, Arrogance, and Stupidity."
As Forest says: "Stupid is, as Stupid does." We surmise Jay-Z can afford it. Yoo Bro... There's a whinner born every minute. Hilarious...
Dear Mr. Z - It's a Hard Knock Life:
You "from the school of the hard knocks, we must not
let outsiders violate our blocks, and my plot
let's stick up the world and split it fifty/fifty, uh-huh
Let's take the dough and stay real jiggy, uh-huh."
Guess you been down-jigged, violated, uh-huh.
he thought he could jingle mail cuz he's down with the masons.
better get brother O on the text jay-hova.
karma's a bitch and sister O's got no secret for that.
Hahahahahaha! Couldn't have happened to a nicer guy, you Illuminate lover! Hahahahahaha!
Ummm...is JayZ doing anything different than a million other investors, hedgies, etc...Only rappers sue?
I think JayZ just like all those other NYC financial types and people who invested with them...they made lots of money in bull market and thought they were geniuses, and then a bear took a bite out of them...add in some of the fraud and lies these hucksters no doubt sold their dupes (see GSacs and their subprime investors)....and these guys get mad when their money disappears...nothing special here except the special heat in the comments...
Welcome to Wall Street J-Z. I smell a hit single coming.....time to go gangsta on Wall Street!
oh man, that's so street...a lame-ass rapper suing over a bad CRE deal. do all the kids out there on the street listening to this playa's music know about this? what is the world coming to when a respectable rapper - who's just trying to increase his empire - gets caught in all this bo-shit. yo, gees, f**k Jay-Z and every rapper on the face of the planet...i hope he goes BK.
I take it you are a big rap fan eh?
Banksta' Versus Gangsta'
Sorry, but the Lord Blankfeins of this world always wins.
Poor Jay-Z brought a rap to a gun fight. Among the real estate "professional" sleazebag crooks, unsophisticated investors of the celebrity mold are considered especially prized for their willingness to invest money to be considered one-of-da-boyz, usually with the encouragement of a "trusted" investment advisor.
I have no idea what happened in this case and Jay-Z may have gone into this with eyes wide open. But there are plenty of celebrity (and non celebrity) investors who have had their heads handed to them over the years in real estate.
"brought a rap to a gun fight"
Thank you for the laugh!
My guess would be he went into it with eyes wide shut. Kubrick fan, sorry.
On a funnier note, Listen to the lyrics of his "Empire State of Mind" song/rap. At one point he raps "If I can make it here [New York City], I can make it anywhere." He should come out with a remix. This time he can aptly title it "MC Hammer state of mind"
"...I love New York....I love New York...." He might want to change the words to his rappin songs. I didnt choose the CRE game; the CRE game choose me. What What? Truly in the words of Lil' Wayne: The Block is hot.
this may turn into the best post ever
8 million stories out there and their naked,
Cities is a pity half of y’all won’t make it,
Me I gotta plug a special and I got it made,
If Jesus payin LeBron, I’m paying Dwayne Wade,
3 dice cee-lo
3 card marley,
Labor day parade, rest in peace Bob Marley,
Statue of Liberty, long live the World trade,
Long live the king yo
In New York,
Concrete jungle where dreams are made of,
Theres nothing you can’t do,
Now you’re in New York,
These streets will make you feel brand new,
The lights will inspire you,
Lets here it for New York, New York, New York
Beyonce be looking for Lord Blankfein, show her the money.
I hope Beyonce didn't co-sign.
Since when did rappers settle disputes by suing an adversary rather than busting a cap in his ass?
Does this mean I might soon qualify to write the lyrics for a rap song? Jay-z will have to learn a whole new vocabulary, I happily volunteer to teach him all the cool CRE terminology, lets see: "over-leveraged", "underwater", "full-recourse", "hand over the keys". There! I'm going platinum.
+1000
I guess we'll get to see just how much of Gangsta he really is...
I suspect he's a wannabe, like my wannabe Bubba brother who moved to Georgia (with a New England accent) many years ago. After 20 years living in the same house, my brother tells me his Georgia born and bred next door neighbor has learned to ignore him and has given up attempting to run over my brother in his Bubba truck.
Tough crowd in Georgia and in NYC.
LOL!
Friend or foe yo, state your biz
Ya tend to dough, ah, there it is
Me, I run the show, oh, and these kids
Don't like nobody commin around here fuckin wit they doe for shit
You enterprisin though,
And I like it
But fuck with the big dogs though, I gotta bite ya,
Look, its out of my hands
And you gettin money round here, its not in the plans
So hop yo ass out of that van, head back to kansas
I'm sendin niggas back up in campuses
Chance is slimmer than that chick in calvin klien pantses
Let me guess, they said it was money round here
And the rest is me stoppin you from gettin it, correct?
Sorry to hear that, my guess is you got work at the hotel
I'll take care of that, you'll see, now please
Give me the room key
You're twitchin, don't do that, you makin me nervous
My crew, well, they do pack, them dudes is murderous
oh, real estate again http://www.youtube.com/watch?v=GfcgwxPH7Rc
I think its time Jay-Z renamed himself J-AE for "Jack Ass Extraordinaire".
Welcome to the club Jackass, but 52 Million is a pretty good ass rape, hope they used a drop of lubricant to make insertion a tad easier.
But, since you're squealing like a little school girl in court I can only surmise they rammed it so hard and fast that it broke the rap sound barrier.
Could not have happened to a nicer person. Shuuu Nuff.
His wife is soo hot, maybe he can trade?
Those rappers should have better saved their gold bracelets.
FUCK JAY Z
The Illuminati Puppet extraordinaire
A rapper and his money are soon parted.
catchy song but he's still an idiot
In New York,
Concrete jungle where dreams are made of,
Theres nothing you can’t do,
Now you’re in New York,
These streets will make you feel brand new,
The lights will inspire you,
Lets here it for New York, New York, New York
Cramer: 8 Bull Markets Happening Right Now
Published: Wednesday, 3 Feb 2010 | 10:08 PM ET Text Size By: Gennine L. Kelly
Web Producer, Mad Money
A whole new set of unexpected bull markets are rolling out, Cramer said Wednesday. Despite Washington’s pressure on Wall Street and the slowdown in China, some stocks seem to being quite well.
Cramer's Top 20 Earnings To Watch: February 2010
“Sectors that have been left for dead are rising from the grave: media, cable, commercial real estate, housing, the regional banks, the drug stocks,” he said, adding autos and biotech too, “all groups the bears told us needed to be put out of their misery in 2010.”
First media, where Time Warner [TWX 27.55 -0.35 (-1.25%) ] and News Corp. [NWSA 13.11 -0.56 (-4.1%) ] just reported two of the best numbers seen during this earnings period. And believe it or not The New York Times Co. [NYT 12.07 -0.42 (-3.36%) ] at one point today was an S&P 500 leader. Also, it looks like we’ve seen the genuine bottoms in Gannett [GCI 13.64 -0.97 (-6.64%) ] and McClatchy [MNI 5.03 -0.30 (-5.63%) ], Cramer said. He thinks the sector is starting to get bullish.
Then there’s cable, an industry that was supposed to be slowing down. But Comcast’s [CCS 24.336 -0.044 (-0.18%) ] numbers were amazing, Cramer said, and its business is speeding up. At the same time, Verizon Communications [VZ 28.69 -0.50 (-1.71%) ] and The DIRECTV Group [DTV 30.50 -0.78 (-2.49%) ] are both doing just fine.
How about commercial real estate, which according to the bears was to be 2010’s biggest catastrophe? Reports say that commercial real estate investment trust managers are lamenting that they raised so much equity but there is nothing for sale. If there is money and there are banks that have to get rid of bad loans or bad commercial mortgage securitizations, Cramer said, you’d think buyers would be connected with the distressed sellers.
The housing sector seems to have taken a turn for the better thanks to Florida, Nevada, California and even New York, with home sales producing impressive returns in the real-estate market. Cramer thinks the industry could work its way back to boom level.
As for the autos, Toyota Motor’s [TM 72.102 -1.388 (-1.89%) ] recall is probably going to be far more damaging than most people realize, Cramer said. But TM’s pain will be a gain for domestic automakers, with Ford Motor [F 11.08 -0.56 (-4.81%) ] going still higher.
Now that Wall Street reform seems to be dead in the water, investment banks like Goldman Sachs [GS 150.73 -6.50 (-4.13%) ] and JPMorgan Chase [JPM 38.46 -1.83 (-4.54%) ] are on the move. And earnings from the regional banks were the best of this period. Everyone from Huntington Bancshares [HBAN 4.58 -0.13 (-2.76%) ] to Fifth Third Bancorp [FITB 11.23 -0.77 (-6.42%) ] to Marshall & Ilsley [MI 6.06 -0.34 (-5.31%) ] to PNC Financial Services Group [PNC 51.03 -2.68 (-4.99%) ] is doing really well.
The drug stocks are back since the special election in Massachusetts put an end to the Democratic supermajority in Congress, and put healthcare reform on the backburner. Biotech is on fire, Cramer said. He thinks it’s the best-performing stock group of the year.
The bottom line: Some stocks are working despite all predictions to the contrary – even Cramer’s. And that gives us a number of plays, he said, “to rotate into while we wait for Washington and Beijing to take their collective jackboots off the market’s jugular.”
"...rotate into..." - Cramer... bWAH HA HA !!! - sit and spin lol
No problemo...his wife will just have to sing once a month for Kadaffi Jr...that will cover his short...lol
Singing for Kadaffi, Jr.....peddling vodka the sins are cashed in...lol
if he goes and sticks a mac 10 in blankfein's face and demands money, then and only then will be a OG, orginal gangster, othewise he is a punk and a bitch....
"I'm not a businessman I'm a business... Man"
Guess not!
Sounds like ol' Louis XIV...
"L'Etat, c'est moi."
Nice. The French are pretty used to it.
http://jetsethobo.files.wordpress.com/2008/11/coronation.jpg
You just can't make up shit this funny.
Beyonce is going to be doing a reprise of the old Destiny's Child song "BILLS, BILLS, BILLS"....
Jay Z's CDS now trading at +1400 over the SDBI (Snoop Dogg Benchmark Index).
Yo, Jay.
That's what you get for doggin my ride, BITCH!
Gimme a shout if you need a lift. I'll pick you up in my V70R. Its a Volvo, but at least I ain't gotta be a bitch and sue anyone over it.
Bring a blunt or some Beyonce, though, because you know how it is: ass, gas or grass, no bitches ride for free! I'm a buisness, man. You're just a 'bitch-ness,' man.
PS Your families 'whips' get repo'ed yet, bitch? Say Hi to MC Hammer down at the shelter.
Meanwhile back on the left coast...
Snoop's crib-
Sippin' on gin n' juice
Laid back with his mind on his money and his money on his mind....HOOOoooooh !
MC Hammer... BBBBWWWAhahahahah
Does anyone know where you can get a copy of the complaint? Besides off PACER?
Rapper "Bird Man" just bought some oil exploration company. Gold teeth as collateral perhaps. MC drilla'. Thats my cuz Lil drill bit. And my homey MasterPlan, 50 Barrel.
ROTF!
You guys are killing me!
Hugh Hendry to JayZ: "You arrrh fuuulish, my lad. It is nuuht the tyyme furrrh property. It wont come back for a generation. I am the knife/the "nine" pushed up against the spine to keep people honest. It is not the time for mo money mo money mo money. I dunt pick botoms. It all began with Moddigliani. JayZ: "Mo' who? He up in Queens?" Bottoms? Leave Beyonce out of this!"
This has Stringer Bell undertones...look what happened to him when he ventured too far off 'dem corners
props.
this was the only post i genuinely found funny/intelligent and not just a way for people to insult jay-z and hip-hop culture in general with corny stereotypes.
boo on everybody else.
Is my mic on? Check one Check one: Interest payment Uh Uh UH Check 2 Check 2 Chapta 9 Chapta 9 Uh Uh Uh Check Check 3 call my lawyer call my lawyer What up what up Relocate to Section 8 Go to jail get fornicate with cell mate I cant pay I trade out beyonce for my failure to pay Put your hands in the air like you just dont care...I luv new York...
Back to yo mamas basement bro
R you down with CRE? Yeah you know me I said Are you down with the CRE? Yeah you know me Are you down with CRE? Listened to a lawyer from the NYC. He proceeded to take all my money- Why didnt I listen to the Hugh Hendreeey? I gave my Benjamins to the slimy CRE hustler- why not to master Marc Farber-er? I lost all my Hamiltons to the CRE the AIG the GMC the CME the vermon NYC and the Feds long legged MacDaddy. Re-appoint the Bernhakee? I'm not down with that Goldman lackee! One broke MC I be. all by myself with CRE and no moneey. I lost like this. I lost like that. I wanna hit geitner with my baseball bat... are you down with the CRE?
haha +50 Brass Monkeys for the bboy ref at the end
Oh, yeah. Good ****. You can feel the rhyme.
i'll heckle his broke ass at the Borgata this March asking him to do a re-mix of Cypress Hill's 'Real Estate'
Yes the master pass, kick your ass
and feel combustion, for the dope blast
Cause you're steppin on my property, get off it G
Get caught up, then you get shot up
See, violators will be prosecuted
by the reputed, undisputed, Cypress zooted
Not so, no there's no sellout
You ain't got enough ducats to shell out
Well I'm in front, and yo I feel great
Check out the story to the glory of the real estate
Will he be ponying up in US $ or euros and will that portend market direction?
Jay-Z. Only in America can a crack dealer be embraced by The President and his wife sing at The Ball.
http://www.youtube.com/watch?v=aapM-u_cOuc
God Bless America
Sorry Jay-Z! I know you think your Illuminati royalty, but the truth is your just another one of their stooges. How does it feel to be hung out to dry?
K Jay-z grew up in brooklyn projects n was selling crack n today is est. to be worth $300mill. How many of you losers on here laughing have a life that has returned anything close to that? In hiphop you all are known as "haters". Get a life!!
"And Jesus can’t save, you life starts when the church ends"
Yep, and that's what you get for dissin' Jesus.
This is just like MC Hammer's demise, only funnier. I guess its time to make a sex tape with Beyonce, that should pay some bills.
Wow what a bunch of haters. Jayz made it and has accomplished many things. To me this level of financial mishap just tends to be out of his league, but he is a successful business man and has bettered himself. Has a beautiful wife and appears to be well balanced.
Yo, Mr. Ro$$. Is that you? Sign my forehead!
http://www.yorapper.com/Photos/rick-ross-jay-z-trilla.jpg
One of the most commented threads in the recent days.
That's is why the US is so loved around the world. Nothing better than a good bashing on a black person to bring together US citizens from all walks of life.
You know "The World Is Flat" Friedman? His wife lost a whole lot more in malls than all the rappers combined.
At least he's being dignified about it and isn't suing people.
Dudes got 52 million problem, but a bitch aint one.
i found little info beyond the original article to teach a genuinely-interested reader about what happened here. I just see wanna-be comedian commenters. I understand the urge to come up with some funny jokes.
but most of you sound like mean-spirited non-hiphop culture people. more importantly, ones who are full of negativity and joy at other people's misfortune. poor form.
jay-z is estimated at $300 million, so all you people calling him broke need to read more. there are valid critiques of Sean Carter; he is a tool of the corporate culture who helps disseminate a materialistic, Conservative message of self-interest, conspicuous consumption, and money as the ends that justify any means. but none of you voice that (except indirectly the "illuminati" people). most of you are just here to make corny, obvious "rap peeple tawlk like dis and b spellin funnee" jokes. boo.
and i detest people who stereotype hip-hop culture as gangsters and drug-dealers. saying f*ck all rappers is to me violently ignorant and subconsciously racist. i hope Immortal Technique comes to your house while you are sleep.
i don't sympathize one bit about jay-z losing 50 million. but i don't celebrate with clowns just because they got big red shoes. later, haters.
"all yalls gold mines they want to deplete you"....Hows that? Are you satisfied now that I quoted a real MC. Jay Z is no MC. Not worth spit. He deserves absolutely ZERO respect, on this site or anywhere for that matter. Haters? I could care less about Jay Z's paypa stacks. However, he cares. And the fact that he lost the only thing he enjoys (a man that promotes women as hoes does not enjoy the touch of a woman, he enjoys his domination of that woman) makes me smile. Especially because he sucks from the tit of the Illuminati. Ive known how to spot a hater for a long time. The hater is the one calling out...the true blue doesn't need to waste time. 'Nuff said.