Lehman Casts Shadow on Commercial Market
The Wall Street Journal reports: Uncertainty over the future of Lehman's real-estate holdings in the Washington region is casting a shadow over the future of its commercial-building sales.
For years Washington had been one of the country's hottest commercial real-estate markets. This year through August, office buildings in Washington valued at $5 million or more sold for an average of $568 a square foot, compared with about $240 nationally, according to Real Capital Analytics, a New York real-estate research firm. As prices rose, Lehman was one of many investors snapping up numerous properties.
"D.C. was certainly one of [Lehman's] main targets," said Dan Fasulo, managing director at Real Capital Analytics.
Mr. Fasulo said the bankruptcy court likely will offer any Lehman real-estate stakes first to joint-venture partners. While Lehman's stakes in well-leased Class A properties aren't expected to have trouble finding buyers, ongoing development or redevelopment projects could face more difficulties.
If Lehman's former partners don't bite, the properties could be pushed onto the market and sold at lower prices, he said.
"At some point [the bankruptcy court is] going to put the assets up for sale and see what they get. And those are definitely forced sales, distressed sales," Mr. Fasulo said.
View the full article on The Wall Street Journal: Lehman Casts Shadow on Commercial Market
Posted by: Nina Turner