Collateral damage. Trump had to be got rid of. Too bad for those investors, but I’m guessing most of them were cheering when PDJT went down.
Commercial real estate everywhere is in a parlous state.
That’s a shame.
Surprised there is enough equity to make it worthwhile for the mezzanine lender.
I know of one office tower that was taken over by homeless people. They painted graffiti inside and out.
I wonder if its dawning on them yet that we’re not going back to the office. Ever.
No one wants to answer the question, “what will keep these cities from the same path as cities such as Detroit, Baltimore, Philadelphia, Newark, Oakland, etc.?”
The is a PLETHORA of illegal immigrant foot traffic!
LOL
Are these the office buildings that are too big to fail?
A matter of national security that they are bailed out?
Hope you enjoy some late night gallows humor.
This is happening in the Bay Area and Los Angeles also. Its a symptom of a greater problem. Our corporate infrastructure is crumbling.
What’s Oaktree going to do with an office tower?
Or any lender for that matter?
Sell it to the Chinese?
I used to work in that building many years ago.
Both Dallas and Fort Worth figured out in the 1990s that downtown office space was simply not working out to be as valuable and needed as before. More and more suburbs of the DFW area were building mini-office centers, so people could still work for XYZ corporation, but didn’t need to drive an hour into downtown Dallas/Fort Worth to complete their work. Digital networks, remote work capabilities, and various other contributions have made the need for one huge building or sprawling facility obsolete.
Both Dallas and Fort Worth originally had charters and city zoning ordinances which made these buildings either commercial, residential, or industrial and they could not be used for anything else. But, in the late 90s with buildings sitting empty, they changed their tune when younger up-and-comers didn’t want to live on the family farm or in the suburbs, but there were not enough residential spaces in the DFW downtown areas. So, they changed their zoning to allow multi-use buildings (Floors 1 & 2, or even as high as 4, are commercial, the rest are residential)...downtown living EXPLODED. Which spurred a great deal of additional office space growth.
I think with the current mindset of both the employers and employees, many of these new office buildings are going to become multi-use facilities, like the OLD downtown office towers.
Unless your job requires physical attendance (i.e., construction, doctor, police, manufacturing, etc.), most people want to work from home and remove the daily commute. COVID showed that it can be done and be done successfully.
Until these cities realize there are some who want to live downtown (like the New York City life but in Dallas, or Houston, or Albuquerque, etc.), they will continue to falter and THEN they may become the next Detroit, Philadelphia, or name another failing city that keeps a tight control on zoning requirements.
I’m betting that Trump company is thinking of buying it at the bottom.