Posted on 01/18/2024 2:35:26 PM PST by dennisw
World's biggest private equity fund takes a $450million hit on prestigious New York landmark amid a collapse in the commercial property market Comes as landlords across the country write down their portfolios in the wake of high interest rates and an exodus of office workers The price of office space has fallen 35 percent since 2022 leaving US banks vulnerable to billions of dollars in shaky loans The world's biggest private equity fund has become the latest victim of America's hollowed out office culture after it marketed its landmark New York building for a quarter of what it paid.
Blackstone paid around $600 million for the 26-storey tower at 1740 Broadway in 2014 but is now offering it to anyone willing to pay the $150million left on the mortgage. It comes just a week after Shorenstein put the 62-storey Aon Center in Los Angeles on the market for $153.5 million, down from the $269 million it paid ten years ago.
Persistent high mortgage rates and the millions of Americans still working from home have been blamed for the collapse in prices and an office vacancy rate reaching a record 19.6 percent in major cities earlier this month.
'I think this is an existential moment,' said RXR real estate boss Scott Rechler.
'This post-COVID world of higher interest rates, the changing nature of how people work and live, we're not going back to where we were, and it's going to be turbulent.'
(Excerpt) Read more at msn.com ...
Where’s Tits James and judge Endgame with this commercial/Consumer fraud and inflated values?
+++ Thanks!
Not a fan of bailouts. Market forces (creative destruction) will resolve issues in the real estate market.
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