Offices At Ire-Sale Prices
The Wall Street Journal reports: Opportunistic investors who have bought buildings at steep discounts are beginning to pass on their savings to tenants, much to the distress of other landlords in the area.
Take the case of the lease that Samsung Electronics America Inc. just signed for 193,000 square feet in an office building in Ridgefield Park, N.J., for its North American headquarters. Earlier this year, the 235,000-square-foot building at 85 Challenger Rd. was purchased by KABR Real Estate Investment Partners LLC, a real-estate fund, from American International Group Inc., which had taken control of the distressed property.
The price KABR paid for the then-empty property: about $10.5 million, or about $44 a square foot. The average price of comparable office buildings sold near the peak of the market in 2007: about $200 a square foot, according to Real Capital Analytics, a New York real-estate research firm.
View the full article on The Wall Street Journal: Offices At Ire-Sale Prices
Articles related to this topic:
Houston Tops Texas CRE Distressed Markets
New Distressed Manhattan Property Tally Tops $12 Billion
Tishman Speyer's $5.4 Billion Boomerang
Low Realty Prices Will Attract Foreign Investment To GCC
Silicon Valley Brokers Aid Banks In Unloading Properties
Posted by: Mark Alferman