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Midtown office tower sold at deep discount

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FarCenter Donating Member (1000+ posts) Send PM | Profile | Ignore Sat Mar-07-09 11:16 AM
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Midtown office tower sold at deep discount
<snip> http://www.crainsnewyork.com/article/20090306/FREE/9030...

The independently operated subsidiary of CB Richard Ellis Inc. wouldnt say how much it paid for 1540 Broadway but sources say the 44-story building had a $355 million price tag. Sources say Mr. Macklowe paid around $950 million when he bought a portfolio of seven buildings for $7 billion. He was forced to return all of them to his lenders when he couldnt repay his loan. One buildingWorldwide Plaza on 8th Ave.has yet to sell.

<snip>

The sales volume of Manhattan office properties plunged 69% last year to the lowest level since 2005, according to CB Richard Ellis Inc. Sales volume hit $12.1 billion last year, down from $38.6 billion in 2007. Forty-seven towers were sold, a 63% decline from the 128 trades in 2007.

The environment worsened as the year progressed. The company said only 6% of last years volume happened in the fourth quarter, down from 20% to 30% in recent years.




And I can't imagine why they are still at work on rebuilding the World Trade Center. There is no demand for office space.

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marmar Donating Member (1000+ posts) Send PM | Profile | Ignore Sat Mar-07-09 11:17 AM
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1. It's getting butt-ugly.......
:scared:


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KharmaTrain Donating Member (1000+ posts) Send PM | Profile | Ignore Sat Mar-07-09 11:36 AM
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2. A Lot Of These Buildings Were On The Boards For Years
We're seeing a similar picture here in Chicago. Trump was lucky to get his building done right under the wire and he's facing legal battles over tennants who want price reductions. Another skyscrapper in the planning down the river sits at 29 stories and holding instead of the 90 that are planned and all work has stopped. The Spire...a 2,000 foot monster is now nothing but a big hole in the ground as financing for any further work is in limbo after the foundation was set.

This reminds me of the recession of the early 90's...a glut of office space at that time depressed prices, but they did recover. I don't see that happening here anytime soon.

Another problem are the condos that sprung up in recent years. Old buildings were rehabbed in hopes of luring the city dwelers back downtown. Some of these units were being offered at seven figures. It'll be interesting to see how those sales are going.
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