The Billionaire Shorenstein Family purchased 188 Spear Street in downtown San Francisco for $170 psf, thats 56% less than the property was appraised at in 2007.
Another A building, in the heart of the financial district, 250 Montgomery, sold for $172 psf, which represents a 56% price drop from what the previous owner paid ($385)
Taiwanese real estate investor Steven Pan is in contract to buy 49 Stevenson Street, at $190 psf. Mr. Pan was quite active in the San Francisco market in the mid-1990's, at one point he amassed a 1,000,000 square foot portfolio.
Friday, January 8, 2010
Wednesday, January 6, 2010
Speaking Engagement in London, Distressed Asset Highlights
Speaker at London Conference
I am speaking at the Islamic Finance Forum conference in London January 20th. This is a great forum to discuss our Shariah compliant version of the real estate fund with numerous European and Middle Eastern investors. We will also be addressing leading financial organizations who understand Shariah law and can originate creative financing the fund.
Starting the decade with numerous distressed real estate deals:
David Lynn, head of US research and investment strategy for ING, said recovery will be "a gradual process, not a crescendo like the early 1990s." He believes that we will not see the domestic US economy improving and stronger fundamentals that lead to rising income and property values until 2012 and 2013. If this is the case then 2010 and 2011 should be ripe for acquiring distressed real estate.
Noting that the volume of distressed assets grew by 557% in the past 12 months, Lynn also charted the upward progress of commercial real estate loans maturing in the next few years. This year, $306 billion will come due; next year, it will be $320 billion. In 2011, that total to rise to $370 billion, and in 2012 $420 billion of loans will mature. Further giving rise to distress--and buying opportunities--will be more bank failures. This year, about 130 financial institutions have gone under, and while the body count will not reach the nearly 3,000 that amassed during the S&L crisis, Lynn says we’ll see failures "in the high hundreds" this time, mostly small and regional banks.
All of the above statements point to a great time to be buying commercial real estate in California. Let the games begin.
Mark Stevens
I am speaking at the Islamic Finance Forum conference in London January 20th. This is a great forum to discuss our Shariah compliant version of the real estate fund with numerous European and Middle Eastern investors. We will also be addressing leading financial organizations who understand Shariah law and can originate creative financing the fund.
Starting the decade with numerous distressed real estate deals:
David Lynn, head of US research and investment strategy for ING, said recovery will be "a gradual process, not a crescendo like the early 1990s." He believes that we will not see the domestic US economy improving and stronger fundamentals that lead to rising income and property values until 2012 and 2013. If this is the case then 2010 and 2011 should be ripe for acquiring distressed real estate.
Noting that the volume of distressed assets grew by 557% in the past 12 months, Lynn also charted the upward progress of commercial real estate loans maturing in the next few years. This year, $306 billion will come due; next year, it will be $320 billion. In 2011, that total to rise to $370 billion, and in 2012 $420 billion of loans will mature. Further giving rise to distress--and buying opportunities--will be more bank failures. This year, about 130 financial institutions have gone under, and while the body count will not reach the nearly 3,000 that amassed during the S&L crisis, Lynn says we’ll see failures "in the high hundreds" this time, mostly small and regional banks.
All of the above statements point to a great time to be buying commercial real estate in California. Let the games begin.
Mark Stevens
Subscribe to:
Posts (Atom)
Posts
