AIG's $16 Billion in Global Real Estate May Be Source of Cash
Tuesday, September 23, 2008
Source: Bloomberg
Bloomberg reports: American International Group Inc., selling assets to repay a U.S. government loan, may seek buyers for some of its $16 billion in global real estate holdings.
Lower Manhattan office building prices have fallen this year from their peak in 2007, according to data from Real Capital Analytics, a New York-based research firm that tracks commercial real estate pricing.
Prices for the 13 buildings sold to date averaged $442 a square foot, down from $504 a foot for the 26 buildings sold last year. Still, the 2008 average is almost twice the $222 a square foot that buildings traded for in 2004.
If AIG sells the headquarters building, located at 70 Pine St, the buyer probably won't use it for office space, said Dan Fasulo, managing director at Real Capital.
"I see that as a brilliant residential or hotel conversion," Fasulo said. "I don't think they'll have a hard time finding a buyer for that asset."
The building "just doesn't have the efficiencies of a modern office building," said Fasulo, who declined to speculate on how much the building may fetch.
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Posted by: Nina Turner