Posted on 03/24/2024 6:30:09 AM PDT by Lockbox
Across the country, deals are starting to pick up, revealing just how far real estate prices have fallen. That’s spurring widespread concern about losses that can ripple across the global financial system — as underscored by the recent turmoil unleashed by New York Community Bancorp, Japan’s Aozora Bank and Germany’s Deutsche Pfandbriefbank as they took steps to brace for bad loans.
In Manhattan, brokers have started to market debt backed by a Blackstone-owned office building at a roughly 50% discount. A prime office tower in Los Angeles sold in December for about 45% less than its purchase price a decade ago. Around the same time, the Federal Deposit Insurance Corp. took a 40% discount on about $15 billion in loans it sold backed by New York City apartment buildings.
(Excerpt) Read more at crainsnewyork.com ...
Who is going to purchase CRE in major cities?
Remote work isn’t going away.
Neither is crime and inflation.
I’ve always wanted to “squat” in one of those pricey commercial buildings for free. Maybe get a penthouse view overlooking the city. Yeah, that’s the ticket.
The cratering of the urban core is an interesting obstacle to the scheme of herding the populace into confined central cities.
Why not house the illegals and homeless drug addicts in those buildings? That would get them back to 100% occupancy. I’m completely serious.
There are some investors buying at a 50% discount. Wonder if that is enough of a discount? Time will tell!
2/27/24
Canada Pension Plan Investment Board has done three deals at discounted prices, selling its interests in a pair of Vancouver towers, a business park in Southern California and a redevelopment project in Manhattan, with the New York stake offloaded for the eyebrow-raising price of just $1. The worry is those deals may set an example for other major investors seeking a way out of the turmoil too.
So somebody please explain to me why my rent for my apartment went up over 50% this year.
I agree.
I am so happy these liberal-infested locales are tanking from their policies and the lack of people to fund them.
cities are now anachronisms
no longer any need to concentrate human, financial and material capital
they are primarily “useful” for generating fraudulent ballots for the UniParty
and for local politicians creating huge messes that their Fed congressional delegates drop in the lap of Fed.gov for the rest of the nationwide taxpayers to foot the bill for “clean-up”-which mostly winds up in the pockets of the local pols and the Fed congressional delegation
In the Philly burbs area, there are empty commercial properties in prime areas.
I know that only applies to office related work.
Been WFH since March 2020 and love every day of it. I've never missed being in the office.
because there is a landlord shortage. Nobody want the hassle-so BlackRock and Vangaurd are becoming the landlords of last resort
Apples and oranges ...
This unwinding will be interesting to watch.
Interesting thought, with high technology are cities even needed? Remote work is an example…
Claim it for your residence and use squatters rights! 🤣🤣🤣🤣🤣
I’m remote as well. I design electrical projects, so I don’t require anyone’s input.
Intelligent companies have increased their competency pool a hundred fold.
A “Sears” future awaits many…
Yep, there are those clearing off their books. I don’t think the worst has happened.
Costs of doing business
1. Real estate taxes going up
2. Insurance increases up (ours went up 25%)
3. Interest rates up. Most investment RE are ARMs
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