Columbia Center Misses Loan Payment
Puget Sound Business Journal reports: When Beacon Capital Partners bought Columbia Center, it had net operating income of $31.8 million, according to Clancy, of Trepp. With the recession, rents in the building have declined from $30.20 per square foot in 2008 to $24.90 per square foot last fall. Net operating income for the first three quarters of 2009 was $15 million, which was less than needed to service its debt, according to Clancy.
Dan Fasulo, managing director of New York real estate research firm Real Capital Analytics, expects that the loan servicer will likely try to restructure the loan.
“We have not seen many liquidations. We’ve seen many lenders, even commercial mortgage-backed securities servicers very much willing to work out a restructuring of the loan terms,” Fasulo said. He said he’s seen early signs of recovering property values in select markets.
“It’s only a matter of time until it hits Seattle,” Fasulo said.
View the full article on Puget Sound Business Journal: Columbia Center Misses Loan Payment
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Posted by: Mark Alferman