If you’ve been to NAPA…Northern end, you have seen this beautiful villa elevating from the surrounding Oaks…

Iconic Napa wineries part of $269 million sale-lease deal

THE PRESS DEMOCRAT
Sterling Vineyards near Calistoga is part of Diageo alcohol conglomerate’s $269 million sale of Napa Valley properties to a California investment group. Diageo will lease back the wineries and vineyards.

By Kevin McCallum
THE PRESS DEMOCRAT

Published: Thursday, June 24, 2010 at 6:40 p.m.
Last Modified: Thursday, June 24, 2010 at 6:40 p.m.
One of the largest California wine deals in years was announced Thursday, not that wine drinkers will ever taste the difference.

Diageo, the London-based alcohol conglomerate, revealed that it is selling most of its Napa Valley wineries and vineyards to an investment firm for $269 million, and then turning around and leasing them back for 20 years.

The sale-leaseback arrangement between Diageo and Realty Income Corp., an Escondido-based real estate investment trust, is the largest such transaction in the U.S. wine business, one that will help Diageo raise cash without impacting its wine operations, said industry analyst Robert Nicholson.

“It’s a very meaningful development and it’s a very smart move by Diageo,” said Nicholson, a principal at International Wine Associates, a Healdsburg consulting firm

The deal involves two of the best known Napa wineries. The historic Beaulieu Vineyards was founded in 1900 in Rutherford and, under the guidance of the famed viticulturalist André Tchelistcheff, helped spawn the valley’s fine-wine renaissance.

Sterling Vineyards, the white stucco winery on a bluff south of Calistoga, was founded in 1964 by British international paper broker Peter Newton and has become one of Napa Valley’s most popular tourist destinations.

Diageo Chateau & Estate Wines will continue to manage and operate the properties and will retain ownership and marketing of the wine brands. In return, it will enter into 20-leases for the buildings and 2,000 acres of vineyards. When completed, Diageo will become Realty Income’s second-biggest tenant.

The transaction allows Diageo, which has struggled during the recession, to raise cash and increase returns for shareholders.

“We know that to remain competitive in this environment we need to rethink our whole wine business to be more nimble and entrepreneurial,” said Zsoka McDonald, a company spokeswoman. “This is about ensuring the long-term strength of our North America wine business and the health of our core wine brands.”

Diageo’s wine and spirits portfolios tend toward the high-end, and it has been hit hard as the alcohol business has proven to be less recession-proof than many thought. It owns such powerhouse brands as Johnnie Walker whiskey, Smirnoff vodka and Guinness stout.

Its wine sales fell 7 percent in 2009. The company announced in May it was restructuring U.S. wine operations, laying off about 14 percent of its workforce and would focus on core wine brands, including Beaulieu Vineyard, Sterling Vineyards, Chalone, Acacia, Rosenblum Cellars and Provenance.

The chief benefit for Diageo is that is can raise cash while paying reasonable leases on the properties, said Joe Ciatti, of Zepponi & Company of Santa Rosa.

“Diageo’s saying ‘We’ve got these wine assets that really don’t produce a lot of return for us, and it’s better for us to sell those off,’” Ciatti said.

He said he understood the leases would generate a 6 percent return for Realty Income Corp., a conservative return, he said.

Ciatti ran his own wine industry focused REIT, Vintage Wine Trust, from 2005 to 2008, when he was forced to liquidate it because the returns weren’t what investors had hoped.

VinREIT in St. Helena is facing challenges, as well, with several of its properties facing foreclosure.

Nicholson, however, said this deal should work well for Realty Income Corp because it got great properties with a tenant that isn’t going anywhere.

“This REIT is smart. They know what they are doing and got some blue-chip assets,” he said.

And wine consumers, whether visiting the Napa tasting rooms or buying the wines in supermarkets, won’t notice a difference, Nicholson said.

“This is the same as the way Marriott doesn’t own their hotels,” Nicholson said.

However, this homeowner “investor” is right!

Morally wrong?  Is it morally wrong for banks to default on their properties? or is it a business decision?

The last 4 listings we have taken were not necessarily broke or in dire financial straights…they simply were tired of trying to work with their banks to find a solution to their bad financial situation.  The banks are unwilling to work with them… because  they “were not going to work with them as long as your current”.

Please listen and give some feedback:

You know…the more we read about CA the less I am concerned that we are the litigious state that we have the esteemed label of being.

Lot’s of new laws hitting the Halls of Sacramento for consideraton…laws that have already been in place in many other states nationwide…Is CA behind the Legal Eight Ball?

Here’s another bill

Coming to the CA assembly floor this week.

1. Allows for the homeowner to have a Face to Face with their Mortgage Company with the assistance of a mediator…
2. Process begins when the borrower receives a Notice of Default or NOD.
3. Borrower will recieve an election to participate form.
4. Borrower must respond with in 30 days.
5. Must be able to demonstrate the finacnial ability to partake  in a fair resolution.
6. All foreclsoure activity is ceased during this period.

As always…more to follow.

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Here is the bill info:

AB 1639 (Nava, Bass, Lieu) – Mediated Meetings with Your Lender
AB 1639 establishes the Mediated Mortgage Workout Program (MMW).   The MMW will give borrowers the option to request a face-to-face meeting with their servicer/lender and a neutral third party, monitor.   The process will begin when a borrower receives a notice of default (NOD).  At the time of receiving the NOD, the borrower will also receive an election form to participate in the MMW program.  A borrower must respond within 30 days in order to participate and also demonstrate financial capability to participate in the program.  Once a borrower has elected to participate, the servicer/lender must also respond by paying a fee to the administrator of the MMW program, of which half, is refundable to the servicer if a loan modification agreement is reached.  The MMW session will provide an opportunity for the mediator to review the financial condition of the borrower and the offer for modification from the lender and make a determination based on set criteria as to whether a loan modification is appropriate.  During the time in which the borrower participates in the MMW Program, foreclosure activity does not occur on the property at issue.

The Soldiers’ and Sailors’ Civil Relief Act of 1940 (SSCRA) was updated and amended in 2003 by President  Bush.  This Act was created to protect our Fellows in Arms during their “Active Service”.

Many of our soldiers we’re non-active in the National Gaurd or Reserves. When called to duty, they leave jobs behind.  T

What does the SSCRA accomplish? read Below…We are featured in this article:

LASplash.com: Home

Military Family Homes Foreclosed?

By Brian Standly

(Los Angeles, CA) May 4, 2010

Men and women serving in the United States military have protection against foreclose on their homes.

When we think of our men and women serving in today’s military, we may think of that young person who has just graduated high school or college. Enduring basic military training, and learning a demanding skill to take to the battle field. Those individuals have dedicated a part of their lives to protect us from the threats of our enemy’s.

Needless to say these brave individuals have met the demands made of them, and are committed to becoming a successful soldier in the United States military.

There is however an often overlooked area of concern among these homeland protectors. Quite often these soldiers have families and a mortgage to deal with. Not only is a soldier concerned about returning home safely to their families, the soldier is also concerned about the roof over their heads while they are on active duty or deployed overseas.

Kim Darney, Platinum Real Estate, dedicates her efforts on assisting Military Personnel in their housing needs: “With many of today’s active members in a role of Reserves or National Guard, the thought of making their mortgage payments on military personnel’s wages may leave our servicemen or women a little short each month. Many members of our Active military have secured mortgages based on the income of their “non-active” military careers such as business executives, Attorneys, Doctor’s, etc…”

Under the little known provision of the Soldiers’ and Sailors’ Civil Relief Act of 1940 or SSCRA, our fighting men and women are protected

from many of these stressful concerns. One area that is prevalent today is that of mortgage foreclosure on trust deeds that were secured prior to active duty.

The SSCRA explicitly states (50 U.S.C. App. § 532 P.3) that:
• “No sale, foreclosure, or seizure of property for nonpayment of any sum due under any such obligation, or for any other breach of the terms thereof, whether under a power of sale, under a judgment entered upon warrant of attorney to confess judgment contained therein, or otherwise, shall be valid if made during the period of military service or within three months thereafter, except pursuant to an agreement as provided in section 107 [App. § 517], unless upon order previously granted by the court and a return thereto made and approved by the court.”

What does this mean?

Darney explains:
1. “Military personnel are protected under the regulation enacted by the SSCRA from any and all foreclosure activity on their homes that were owned prior to their “active” status in the military.”
2. “Any legal action taken against an “Active” serviceman or woman as it pertains to foreclosure is not allowed during, and up to 3 months after military service is completed.”

This Act has teeth. It even goes a step further, holding any party or parties responsible for attempting to foreclose or seize the home from an active military soldier.  The punishment is severe. These cases will cost the “plaintiff” or proceeding party heavy fines, and may even be punishable by up to 1 year in prison.

When you leave to fight for your country, you need assurance you will have your home to return to.

The SSCRA is here to protect the individuals that protect us, and secures the America way.

After a record-setting number of defaults and foreclosures in 2009, the number of both in North San Diego and Southwest Riverside counties have been on the wane. But while defaults and foreclosure auctions represent the beginning and end of the foreclosure process in California, the middle step, called a “notice of auction,” has been more heavily used in recent months, especially by Bank of America.

In April in North County, 870 borrowers received notices of default, down 2.8 percent from March and 37 percent from April 2009. Lenders sold 133 homes at foreclosure auction, down 47 percent from March and 70 percent from April of last year.

Southwest County saw similar trends, as 853 borrowers defaulted, down 9.7 percent from March and 36 percent from April 2009. Lenders auctioned off 190 homes in April, down 60 percent from March and 70 percent from April 2009.

“Banks are trying to modify loans a lot because of pressure from the administration (of President Barack Obama), or short-sale them,” said Leonard Baron, a professor of real estate at San Diego State University. “It’s a lot less costly.”

Overall, homeowners appear to be making headway against the fundamental problem of properties worth less than the amount on them, according to data from market analyst CoreLogic.

Added all together, borrowers from San Bernardino and Riverside counties are cumulatively underwater: The total value of properties, at $199 billion, was worth $5.6 billion less than the total debt on those properties at the end of March —- an improvement from the $8.3 billion in negative equity at the end of December. San Diego County home owners had $73 billion more in property value than they had in total debt at the end of March, up slightly from $72.2 billion at the end of 2009.

But homeowners already in default found themselves pushed further through the foreclosure process, as lenders sent out 1,438 notices of auction in the North San Diego and Southwest Riverside counties, up 27 percent from March and more than double the number sent the previous April.

Those notices alert homeowners already in behind on their payments that their homes could be sold at foreclosure auction in as little as three weeks. Much of the increase was driven by Bank of America, whose foreclosure division ReconTrust N.A. sent out 39 percent of the notices across the region.

The rise in notices of auction doesn’t mean lenders are about to foreclose, just that they’re keeping their bases covered, Baron said.

“It’s a precaution,” he said. “It’s giving them the ability to foreclose if they need to.”

article byEric Wolff

Hip-hop producer/rapper Kanye West is selling his Hollywood Hills home for $3,995,000. And, no — that sale price is not a typo, missing an extra digit.

There are a couple of surprises in this listing: #1 is that West, who is #46 on Forbes’ Celebrity 100 list, has a home with a price tag of “only” $4 million; and #2, that the controversial and outspoken rapper has a home with such minimalist tastes. And, therein lies the contradiction of West.

Take a look at the photos of West’s home on this post — they are the work of Italian designer Claudio Silvestrin, whose style is described as “… austere but not extreme, contemporary yet timeless, calming but not ascetic, strong but not intimidating, elegant but not ostentatious, simple but not soulless.” Claudio has a pretty cool website, too.

Built in 2002, the home has 3 bedrooms, 3.5 baths, built-in computers in every room, a theater, and room for a pool. What? No pool?

> See more Hollywood Hills real estate

> See Hollywood Hills home values

Thanks Zillow and Diane Tuman