Fire-Sale on Commercial Real Estate... New York skyscraper went for 1/2 billion 3 years ago, sold for $100,000! (Canada, Rockefeller)
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'The 40-storey skyscraper sits on a prime corner in the country's wealthiest commercial market, steps from the Museum of Modern Art and a few blocks from Rockefeller Center and Central Park.
It recently sold for US$100,000. The 1330 Avenue of the Americas building - which sold for close to $500 million three years ago - was auctioned last month for the $100,000 minimum to a unit of the Caisse de depot et placement du Quebec after owner Harry Macklowe defaulted on a $130-million loan.'
"While the building's selling price was low, a Caisse division also took over the defaulted loan and also assumed the $240 million mortgage on the property.
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"So they are selling skyscrapers at a drastic discount, with the condition that the new buyer take on the enormous amounts of debt connected to the properties."
The one that defaulted, for $130Million, and a second one for $110Million to come to the total mortgage value of $240Million.
Still sounds like a deal, depending on what the income is, but the total isnt $100,000
p.s. I know I proposed similar actions right here on these threads, to allow people to come in and assume ownership of properties and take over the mortgages, rather than banks repoing them and having to auction them off, leaving the taxpayers to pickup the bill with Obamas plan.
Someone reading these threads that have authority? mmm
The one that defaulted, for $130Million, and a second one for $110Million to come to the total mortgage value of $240Million.
Still sounds like a deal, depending on what the income is, but the total isnt $100,000
p.s. I know I proposed similar actions right here on these threads, to allow people to come in and assume ownership of properties and take over the mortgages, rather than banks repoing them and having to auction them off, leaving the taxpayers to pickup the bill with Obamas plan.
Someone reading these threads that have authority? mmm
If you read the offline stories, the total is closer to $300M, and the building is 27% occupied. A good long-term investment perhaps, but not the stellar bargain played up in the original story.
No, it sold for a $100,000 down payment, and the buyer took over the $240 million dollar loan.
If the property were for sale for $100K, there would have been people lining up with cash to buy it. Including myself.
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