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- What Are Older Office Towers Worth When They Finally Sell Amid Record Vacancy Rates? Not Much. Huge Losses Everywhere.
What Are Older Office Towers Worth When They Finally Sell Amid Record Vacancy Rates? Not Much. Huge Losses Everywhere.
by Wolf Richter Wolf Street
But foreclosure sales are far worse, including a total wipeout of CMBS investors.
36% loss. Private equity firm Blackstone sold two 13-story Class A office towers, the Griffin Towers, in Santa Ana, Orange County, California, for $82 million to a joint venture between Barker Pacific Group and Kingsbarn Realty Capital. The towers, built in 1987, have a vacancy rate of 24%.
Blackstone had bought the towers in 2014 for $129 million, according to the Commercial Observer yesterday. The selling price makes for a loss of 36%. And Blackstone was lucky on this deal.