Inland Real Estate Dives Into Troubled Commercial Market
The New York Times reports: This year, United States commercial property sales are down by about 90 percent from their peak in 2007, but a handful of cash-rich investors see this troubled market as a prime buying opportunity.
A few years ago, the market was characterized by inflated appraisals, heavy reliance on debt and almost instant resale of buildings. Today’s buyers pick properties more carefully, pay low prices in cash and plan to hold the buildings for years.
But high-quality properties aren’t very easy to find, since many owners are hoping for prices to rebound before they are willing to sell. In this environment, even a relatively mundane structure like the red brick building at 250 Royall Street in Canton, MA was in demand. In June, the fully leased 182,000-square-foot four-story suburban office building sold for $62 million. A few years ago, the same building sold for $68.8 million.
The buyer was G. Joseph Cosenza, president of Inland Real Estate Acquisitions of Oak Brook, Ill. His company is the largest buyer of United States commercial real estate so far this year, according to the research firm Real Capital Analytics.
View the full article on The New York Times: Inland Real Estate Dives Into Troubled Commercial Market
Posted by: Nina Turner