“bought the Shinagawa property for 140 billion yen in 2004 from Mitsubishi Corp and Mitsubishi Motors . The building now houses Microsoft’s Japan offices among other tenants.
Morgan Stanley repackaged the loans into 125 billion yen worth of CMBS in 2005, according to a website for Morgan Stanley.
Taking advantage of a run-up in property prices, MSREF V refinanced its debt on the Shinagawa property in 2007 with new debt worth 278 billion yen, twice the value of its purchase and likely yielding a tidy profit for the fund.
The refinanced debt was sold in six different tranches by Morgan Stanley to investors.”
So they can mail in the keys and walk away making a nice profit.
Like double.