THE GRAPEVINE: DONALDSON, LUFKIN & JENRETTE

Commercial Mortgage Alert, May, 1996

Donaldson, Lufkin & Jenrette last week took another step toward gaining control of a number of apartment complexes that secured an ill-fated 1991 financing for developer Morton L. Ginsberg. At a foreclosure sale in Newark, N.J., trustee Chemical Bank, acting on behalf of a DLJ entity, bought a majority stake in the general partnerships that control the properties.

The auction was one step in the lengthy foreclosure process, which is expected to drag on for some time. DLJ floated $144 million of notes for Ginsberg in 1991 (DLJ Mortgage Acceptance Corp., 1991-MF1), but ended up buying back most of the securities from bondholders after the performance of the properties dropped dramatically.