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🤕 Distressed US office sales…ugly data points are starting to emerge – this one in San Francisco got sold 6️⃣6️⃣% below its most recent assessed property value! 🏢 The description according to the property’s website: Built in 1967, 60 Spear Street is an 11 story office building located within San Francisco’s South Financial District. With square footage of 157,436, the building is fully leased to four tenants. 60 Spear is situated near a number of incredible amenities such as the Ferry Building, The Embarcadero, BART, Steuart Street, Rincon Center, and Salesforce Transit Center. Of course, the website does not mention that the building is expected to be entirely vacant by summer 2025… 🥹 https://lnkd.in/erd5ZJBk (+++Opinions are my own. No investment advice. Do your own research.+++) #markets #investing #assetallocation #money #multiasset #alternativeinvestments #realestate #debtfunds #commercialrealestate #privateequity #distresseddebt #institutionalinvestors #wealthmanagement #familyoffices 🙏Thanks for reading. Enjoyed this post? 👍 Like 💬 Comment 🔔 Subscribe to my profile to be an active part of my network. My investment research focuses on the topics of manager selection, special situations investing and asset allocation.
Sold for a third of ‘assessed’ value. 🤣 Distressed office building sales comps are starting to emerge - and it’s looking ugly. “Sixty Spear St., an 11-story building that is 30% occupied and is expected to be entirely vacant by summer 2025, has been sold to Presidio Bay Ventures for $40.9 million, about a 66% discount versus the most recent assessed property value of $121 million, according to local media SFGATE.” 🍀 Zerohedge / Daniel McNamara Appraisers will increasingly have actual sales comps they’ll be forced to use, rather than having latitude to speculate on current value. That will feed back into updated lender appraisals, increasingly forcing lenders to ‘recognize’ the loss of value, acknowledge technical LTV defaults (if the loan payments are still current) and finding capital to replace the loss of value on their balance sheet. 🍀