Worldwide Plaza sale a good deal
Crains New York Business reports: When Deutsche Bank sold Worldwide Plaza on Manhattan's West Side to George Comfort & Sons and RCG Longview in the summer, the price was a meager $590 million. That was a far cry from the $1.8 billion Harry Macklowe paid for the tower just two years earlier, and from Deutsche Bank's $800 million original first mortgage on the property.
“The deal looked terrible, but it wasn't that bad for Deutsche Bank,” says Ben Thypin, senior market analyst at Real Capital Analytics, noting that the recovery rate for the outstanding debt was 74%. “When comparing how much was owed and what the property sold for, it wasn't a huge discount.”
In fact, Deutsche did better than most. The average recovery rate in New York is currently 70% for holders of defaulted mortgages, according to data compiled by RCA. Nationally, that figure drops down to a mere 60%.
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Posted by: Nina Turner