EVERY DAY EVENTS. Shock & Awe in US Commercial Real Estate. Collapse Warning. Bank Runs Imminent. Get Your Money Out of US Banks.
Blackstone Inc. recently sold 1740 Broadway for approximately $186 million, a significant reduction from the $605 million it paid in 2014. Who Absorbs Losses of this Magnitude 69.25%
This is still one of the most insane deals we’ve seen.
An office tower in San Francisco's Mid Market area shockingly sold for 90% LESS than what it last traded for.
The previous owner paid $62M in 2018 for the 90k SF building.
It was recently acquired by a Starwood affiliate for $6.5M ($72 per SF)
BLOOD BATH: Absolutely catastrophic loss in value
and to make matters worse, San Francisco’s vacancy rate keeps ticking higher, reaching an alarming 37%+
Address: 995 Market St
KBS REIT agreed to sell an office complex in West Houston at a massive 63% discount
CCI will acquire 19219 Katy Freeway for $17.6M, or $87 per SF.
KBS paid $47M for it in 2016.
There's a much bigger problem in Texas.
With 300 empty office buildings, Houston dominates Texas in the 'empty office building rate' in the US w/ 26.3% vacancy
Trailing behind it are two Texas cities: Dallas and Austin w/ a vacancy rates of 25.3% and 25.2% respectively
All three cities are facing alarming vacancy rates.
A NYC office building at 321 W. 44th St. is set to be sold for less than $50 million
A 67% discount from where it last sold in 2018.
A New York City office building owned by a Related Companies affiliate is being sold at a significant discount, highlighting the challenges facing the commercial real estate market.
Empire Capital Holdings and Namdar Realty Group have agreed to purchase the property at 321 W. 44th St. for less than $50 million. This represents a steep discount of approximately 67% from the $152.8 million that Related Fund Management paid for the building in 2018.Key details of the transaction include:
The deal is a short sale, meaning Related and its lenders agreed to sell the property for less than the outstanding mortgage amount.
The 10-story building, located in Manhattan's Hell's Kitchen neighborhood, has approximately 220,000 square feet of space.
Current tenants include Battery Studios and ad agency AKA.
CBRE Group Inc. handled the sale.
This sale reflects broader trends in the US office market:
Office property valuations have plummeted due to rising borrowing costs and decreased demand resulting from the rise of remote work.
Older buildings are struggling to fill space, while newly built or renovated towers are still attracting tenants at strong rents.
Looming loan maturities and rising costs are pushing more owners to sell at discounted prices rather than face potential distress scenarios.
The transaction is part of a growing trend of discounted office sales in New York City.
For example, Blackstone Inc. recently sold 1740 Broadway for approximately $186 million, a significant reduction from the $605 million it paid in 2014.This sale demonstrates the ongoing challenges in the commercial real estate market, particularly for older office buildings, as investors and landlords grapple with changing work patterns and economic conditions
Shock and Awe
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