Strategic default is fine for corporate persons, just not real persons
Gerding Edlen, the developer of Bellevue Towers, the Seattle area’s largest condo towers, handed the project over to lenders to avoid foreclosure, the Seattle Times reports. One of the first orders of business? Chop prices to jumpstart sales at the 539-unit, two-tower development that has seen just 118 closings.
“Prices today aren’t what they were,” Ira Glasser, an adviser to lead senior lender Morgan Stanley, is quoted as saying.
This is the latest example of companies walking away from their projects: We’ve previously written about Tishman Speyer’s strategic default on the sprawling Stuyvesant Town apartment complex in Manhattan. (Dubbed “jingle mail,” the process is controversial.) In that case, Tishman dramatically overpaid for older apartment buildings.
So why can't people say "Prices today aren't what they were," and walk away?
Don't real persons deserve "equal protection under the law" with artificial persons? Wait, don't answer that.