Lehman Brothers Holdings Looking to Turn Profits as it (Finally) Exits Manhattan Market
Commercial Observer reports: For a bank that has been in bankruptcy for nearly three years and is viewed as being the largest catalyst for the most recent recession, Lehman Holdings is surprisingly still agile at playing the real estate game. After going belly-up in 2008, the firm’s $240.0 billion commercial real estate portfolio was parsed out to an independent caretaker, which made the decision to weather the downturn rather than hold a fire sale at the bottom of valuations. Now, Lehman is looking to sell – possibly achieving for sizable profits – some of its holdings as the market’s recovery progresses.
The zombie bank’s most valuable assets are mainly located in Manhattan, where Lehman has already announced it is looking to sell some of its properties on Manhattan’s Fifth Avenue and Broadway. In addition, Lehman holds a signigicant number of mortgages backing commercial properties around the New York City metro. The Commercial Observer cited data collected by Real Capital Analytics (RCA) to state that Lehman originated over 60 major loans on commercial properties before its demise, including “100 Wall, the Chrysler Building, Twitter’s new H.Q. at 340 Madison and the Nobu Hotel.”
The former investment bank has agreed to wind down its entire New York portfolio by September 2013.
View the full article on Commercial Observer: Lehman Brothers Holdings Looking to Turn Profits as it (Finally) Exits Manhattan Market
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Posted by: Nina Turner