Worthe Real Estate Group’s Post

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. 🍀

🤕 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.

Exciting developments are reshaping the commercial real estate landscape, and it's all about creative deals! Check out this insightful article that explores the strategies and steps behind unlocking hidden opportunities in the market. From savvy debt acquisitions to innovative lease arrangements, learn how forward-thinking investors are navigating today's complexities. Don't miss out on the latest insights. #CommercialRealEstate #Investing #Opportunities

Brookfield Class A asset in DTLA falls in value a whopping $362M or 57% from reported 2021 valuation of $632M!  Here is a thought: During times of distress, valuations are far less important than cash flow; the single biggest caveat is your capital stack.  One of the primary drivers in today’s world of distressed real estate is short term/maturing ARM loans that force a transaction.  Transactions (sale or finance) are when valuation challenges become painfully evident.  For the life of me, I cannot fathom why so many brilliant minds failed to secure long term, fixed rate debt when rates were at artificial, all-time lows?! Those rates were a gift from the Federal Reserve and the US taxpayer. For those that took advantage of the opportunity, they massively mitigated risk, dramatically improved long term cash flow and secured a HUGE competitive advantage.  Question for you: If the level of loan maturities and defaults exacerbates a crisis, just how nasty is this downturn going to be? We believe we are going to see once in a generation opportunities. Please share your thoughts. #distressedassets #foreclosure #cre #maturingloan #creditcrisis If you haven’t already, reach out and I will send you my bestseller on loan workouts! https://lnkd.in/gs3dpuHi

Scoop: Another building in downtown #SanFrancisco heads into receivership. More here: The six-story office building was acquired by investor The Kivelstadt Group (the team that also owns Kivelstadt Cellars winery) during peak office demand in the early 2010s, and it was once home to offices for StumbleUpon (RIP) and Stripe. Now it just might be the latest instance of a property owner handing back the keys rather than continue payments on a loan tied to a potentially significantly devalued building. The loan wasn't supposed to mature until July, but it looks like lenders beat TKG to the punch by accelerating the obligation to December 2023 after the first few months of default, per a recent lawsuit from the bondholders. #cre #bayarearealestate #office #commercialrealestate #bayarea #sanfrancisco #officeleasing #officevacancy #downtownsf

This is exactly what we are seeing in our property tax appeals. We have had significant success helping our clients reduce their property taxes. We believe that there is more decline to come. Yes - ugely!! #officedistress #propertytaxappeals #Paramount

Realty Yield is pleased to announce a client's recent acquisition of a 10-unit multi-family property located in SE Portland. This transaction is a good illustration of deals that can still work even with stubbornly compressed capitalization rates and much higher borrowing costs. THE LOW INTEREST RATE OF 3.92% WITH 3 ½ YEARS REMAINING ON THE FIXED-TERM WAS THE KEY TO MAKING THIS DEAL WORK. Our client was completing a 1031 Exchange from a property he sold in Chicago. The deal specifics: ·        Final negotiated price, $2,155,000. ·        Capitalization rate on actuals - ~ 5.32% ·        Loan assumption, `$1.2 million ·        LTV ~ 55% ·        Cash-on-cash on actuals – 4.82% ·        Yield on actuals for client (after-tax cash flow + loan pay down) – 7.57% A WIN-WIN FOR BOTH THE SELLER & BUYER!

In today's real estate market, the adage "Location, Location, Location" holds truer than ever. With over $900 billion in commercial real estate loans maturing in a higher interest rate environment, knowing where to invest is crucial. But it's not just about the location; it's about being quick, strategic, and informed. Discover how family offices are seizing once-in-a-decade opportunities: #CommercialRealEstate #FamilyOffices  

This week's top financing deals featured a $165.7 million refinancing for three Ohio multifamily properties, a $150 million loan to acquire a six-state industrial portfolio, and $106 million from New York City to fund a 100 percent affordable housing development. Get the details and see the rest of this week's top financing deals: https://lnkd.in/eiJeFr3c #CommercialRealEstate #CODealsoftheWeek

Many factors influence a landlord’s decision to modify the terms of a lease for a financially unstable tenant. If restructuring a lease is deemed to be in the landlord’s best interest, there are a few common approaches landlords can take to best protect those interests. Thank you to our Laura Kaplan for sharing these approaches in our latest DE Insight. #commercialrealestate #residentialrealesate #realestateinvestor #realestateinvesting #tenantmanagement #DEinsights https://lnkd.in/eV6hgW-d