Erickson Communities Bought by Hanover Based Redwood Capital Investments LLC

On Wednesday, December 23rd, 2009 after an 18 hour auction, Erickson Communities chose Maryland based Redwood Capital Investments LLC to pull itself out of bankruptcy, of which it filed for Chapter 11 protection in October.

Redwood successfully outbid a New York company, Kohlberg, Kravis Roberts & Co. to get Erickson’s assets, including the non-profit groups Erickson operates.

Erickson says that the Chapter 11 bankruptcy protection filing nor its sale will affect its residents such as those in Erickson’s Oak Crest Community in Parkville and Charlestown Community located in Catonsville, both in Baltimore County. Refundable deposits and living arrangements will remain the same for those currently living in those communities.

It is a great thing that Erickson is able to keep this sale within Maryland, as our state has had a recent number of large companies being bought or headquarters moved out of state, like Towson based Black & Decker ’s buy out by Stanley Works in Connecticut.

Erickson began to have trouble when the real estate market began to drop after 2005′s boom. The large refundable deposits new residents put down (up to around $400,000) were usually paid from proceeds of the new resident’s sale of their prior home. With homes not selling for the amount needed for the downpayment, less people were moving into the retirement communities.

Fore more details on the Erickson Communities sale, read Baltimore Sun reporter Jamie Hopkins Smith’s article.

This is great news for Erickson Communities, their residents in Parkville’s Oak Crest and Catonsville’s Charlestown, Redwood Capital, and especially the State of Maryland!

Black & Decker to be Acquired By Stanley — What Will This Mean For Towson Employees and Towson House Values?

Monday, November 2, 2009 — Baltimore Business Journal reports that Towson-based Black & Decker is to be acquired by Stanley Works, with the deal/merger being completed in the first half of 2010.

What does this mean for its employees and the surrounding Towson community?

Stanley, based in Connecticut, states that the B&D Power Tools division, which has 1,250 employees, will remain fairly the same. The B&D headquarters, however, will no longer be employing most of its’ 250 workers.

The companies state in its SEC filings that less than 10% of each company will lose their jobs. That would be a total of 3,800 losses.

So what could this mean for Towson House Values? Well, it could have a negative impact, if there are a large group of people who will either be 1) Unable to continue making mortgage payments and need to sell in a short sale situation, or 2) Be relocated to Stanley’s corporate headquarters in New Britain, Connecticut.

As the merger/acquisition unfolds, I will be sure to keep track of the Towson real estate market trends and update accordingly. I am hoping the impact is not as great as I imagine it may be.