Uhhh ohh Lower Merion, there seems to be Joisey trouble for our Ardmore developer? Perhaps Dranoff is not bullet proof after all, and what impact will this news, which is front paged news have on us? Maybe Lower Merion needs to hang onto the keys of the castle a little while longer? After all, it's not like we can count on the kids of Plan A and Plan B (AKA Doug Cleland and Angela Murray) and Madame President Backwards Blockbuster to necesarily keep the best interests of Ardmore and Lower Merion in the forefront, can we?
Posted on Thu, Apr. 14, 2011
Camden developer delays repaying DRPA loan
By Paul Nussbaum
Inquirer Staff Writer
The developer of the Victor Lofts apartment building on the Camden waterfront has put off repayment of a $3 million loan to the Delaware River Port Authority because he's short on cash.
The agency lent $3 million to Victor Associates in 2003, interest-free until 2009. The money was part of a $52 million financing package assembled by developer Carl E. Dranoff to convert the historic RCA Victor "Nipper Building" into 341 upscale apartments overlooking the Delaware River and the Philadelphia skyline.
Dranoff, a prominent property developer in Philadelphia and its suburbs, was to start repaying the DRPA in 2009, with monthly installments of $23,259 until the end of 2014, at which time the $2.5 million loan balance would be paid in a lump sum, according to the DRPA loan agreement with Dranoff.
Payments more than 15 days late would put the loan into default, according to the contract. But the agreement also says that Dranoff's obligation to make payments is limited to Victor's "available cash flow."
And cash flow has not been available, Dranoff said Tuesday.
"I'd like to say we're making money hand over fist at the Victor . . . but the property wasn't generating sufficient cash flow to pay this," Dranoff said.
....Dranoff Properties owns and operates nearly a dozen commercial properties in the Philadelphia region and elsewhere, including Victor Lofts; Symphony House, a 31-story condominium building on South Broad Street; Venice Lofts in Manayunk; the Left Bank apartment building in University City; 777 South Broad apartments and retail three blocks south of Symphony House; and the planned Ardmore Station residential and retail development on the Main Line.
DRPA chief counsel Richard Brown said the port authority was looking into whether Dranoff could put off repayment of the loan