And You Think Silver is Volatile? Prominent Portland Building just Sold for 87% 'discount' - OUCH
Time to Rotate out of Risk into Silver Safe Havens
Who? Montgomery Park, (prominent office building)
What? just sold for $33M or $43 per SF
When? It last sold in 2019 for $255M That's a shocking 87% 'discount' / $223M 'haircut'
Where? Portland
Why?
In recent years, the shift towards remote work has transformed the landscape of various industries, with most sectors adapting to this new paradigm, except for a few notable exceptions. Industries such as medical treatment, hospitality, and certain retail sectors have largely maintained their traditional on-site operations due to the nature of their services, which require direct interaction with clients and customers.
In contrast, fields like technology, finance, and professional services have successfully implemented remote work strategies, utilizing digital tools and communication platforms to ensure productivity and collaboration. This widespread adaptation underscores the resilience and flexibility of the workforce, as organizations across diverse sectors have found innovative ways to operate effectively outside of conventional office environments.
Purchase Details: Menashe Properties purchased the Montgomery Park building in Portland for $33 million. This transaction values the 768,443-square-foot building at $42.95 per square foot, significantly lower than its previous sale price of $255 million in 2019.
Investor Confidence: CEO Jordan Menashe expressed confidence in the future of office work in Portland, despite the challenges posed by the pandemic and the rise of remote work. He believes that the office market is beginning to recover as the economy tightens.
Portland's Revitalization: Menashe noted improvements in Portland, describing it as "cleaner" and "livelier," with increased downtown activity. He sees these changes as part of a broader turnaround for the city.
Building Occupancy and Plans: Montgomery Park is currently about 50% occupied with tenants such as Avangrid Renewables, Daimler Trucks North America, WebMD, and Adidas’ employee store. Menashe plans to revitalize the property to enhance its appeal.
Other Acquisitions: Menashe Properties has been active in real estate, acquiring several properties in Portland and a 29-story office building in Chicago. These purchases were made without financing.
Impact on Banks
Foreclosure and Sale: The Montgomery Park building was indirectly owned by a group of banks that foreclosed on the property in February. Selling the building for a fraction of its previous value represents a significant financial loss for these banks.
Weakened Financial Position: Such losses can weaken banks by reducing their asset values and impacting their balance sheets. This can lead to decreased lending capacity and increased caution in future real estate investments.
Market Implications: The sale at a reduced price may also reflect broader challenges in the commercial real estate market, particularly for office spaces, which could affect banks' strategies and risk assessments in this sector.
And we thought Silver was Volatile
When asset classes like Real Estate Crash look for other opportunities.
The Silver Academy endorses 5 Silver miners (snapshot of their performance the past 6 months)
Our endorsement methodology is based on a combination of ore grade, balance sheet, ounces below ground, jurisdiction, business model, geology and management.
Keep in mind that when Silver breaks more free from decade in the making long resistance (as it is beginning to and as the commodity bull run gets underway ) these stocks will explode to the upside
Remember, the wider the space (consolidation) the higher in space
Also recall that even if a stock doubles prior to this bull run (during these distinctive eras) miners can pop 5, 10, 15, 20 X (and higher)
Look at the very last chart, the bull run hasn’t kicked off yet.
