June 19, 2009

Got a couple hundred $K floating around?

Then have I got a deal for you!

From MS/NBC/Associated Press:

Have I got an office tower for you
Skyscrapers across the U.S. are being sold at fire-sale prices

The 40-story skyscraper sits on a prime corner in the country's wealthiest commercial market, steps from the Museum of Modern Art and a few blocks from Rockefeller Center and Central Park.

It recently sold for $100,000.

The 1330 Avenue of the Americas building — which sold for close to $500 million three years ago — was auctioned last month for the minimum to a Canadian pension fund unit after owner Harry Macklowe defaulted on a $130 million loan.

A month before that, the John Hancock Tower — Boston's tallest skyscraper — sold at auction for just over $20 million. The 33-story Equitable Building in downtown Atlanta is set to go up for auction next month; its owners owe more than $50 million to the bank and have only half of the building leased.

Loan defaults in the worst commercial real estate market in decades have created tens of billions worth of distressed properties across the nation, sometimes forcing cut-rate auctions of landmark skyscrapers. Developers are falling behind on mortgages as tenants leave and can find no financing to cover payments, analysts say.

Sounds like the developers are not pricing their properties according to the market. Back when I was living in Seattle, I had a retail business and operated in two locations. Each time, finding a good cheap location without all of the triple-net bullshit was a difficult task. There are some good landlords out there but there are some really bad and out of touch with reality ones too…

Posted by DaveH at June 19, 2009 03:08 PM | TrackBack
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