by Bill McBride on 2/06/2012 08:52:00 AM
Monday, February 06, 2012
Just a reminder that there are still quite a few commercial real estate (CRE) properties that are deep underwater:
From Bloomberg: Atlanta BofA Tower Auction Highlights Foreclosures (ht Mike In Long Island)
Atlanta’s 55-story Bank of America Plaza, the tallest tower in the Southeast, is set to be sold at an open outcry auction on the steps of the Fulton County Courthouse tomorrow after landlord BentleyForbes missed mortgage payments. It bought the skyscraper in 2006 for $436 million ... the 1.25 million-square-foot building has lost 54 percent of its value ...
The $363 million Bank of America Plaza loan became delinquent in December ... was appraised in March at $202 million
“We’re hitting a tremendous amount of that debt coming due,” William Yowell, a vice chairman with CBRE Group Inc. in Atlanta, said in a telephone interview. That will cause “more distressed assets that come to market this year” and may lower the price per square foot on buildings, he said.
Posted by Bill McBride on 2/06/2012 08:52:00 AM