In a similar fashion, an office tower in Saint Louis which was valued at $205M in 2006 recently sold for just $3.6M [1]
[1] https://www.costar.com/article/642008108/one-of-st-louis-tal...
Wait so I can get a huge office building for the cost of three mediocre single family homes?
Some people believe that it’s hard to convert office space into housing. Meanwhile there are people living inside sewage tunnels, cars, the concept of guardians in the UK (who live in office spaces), etc.
I’d be extremely happy to have any of those “hard conversion” offices to live. Naysayers should mind their own business and stop believing in nonsense.
How the hell do you default on a $45 million loan at the same time while buying another property in the same area for $27 million?
This is the kind of stuff that pisses everybody off. The hoi polloi get raked over the coals for college loans while the haut monde blithely skip right past $40 million in debt.
How hard would it be to convert that building to residential, and sell each floor as an unfinished apartment or two?
(With ground floor for retail businesses that are generally appealing to residents of the building, such as a cafe.)
Is there such a thing as scrap value for a building? If you tear it down are there any materials worth scavenging or is the only real value in the land?
For people who can't read the article: just turn off JS and everything works fine.
It's on the corner of 6th and market. Kinda scuzzy area unfortunately.
I wonder what the annual maintenance, utilities, taxes and other upkeep would be on that.
From : https://therealdeal.com/sanfrancisco/2024/04/23/how-low-lnr-...
The key thing is that the buyers had already taken on the loan against the building.
Quote :
"The mostly vacant building was auctioned off eight months after Bridgeton Holdings defaulted on a $45 million mortgage loan. The investor bought the tower in 2018 for $62 million, or $685 per square foot.
LNR, a unit of Connecticut-based Starwood Property Trust, had been acting as special servicer for the $45 million loan. The LNR affiliate took over the loan this month from the original lender, Dallas-based LStar Capital.
Bridgeton, which told lenders last summer it would stop payments on the loan, owed more than $47 million by the April 18 auction.
Because it had taken over the loan from LStar, LNR could have simply credited the $6.56 million auction bid against the more than $47 million Bridgeton owed on the building, instead of plunking down cash at auction, according to the Business Times.
"
So really the reduction is vastly less than is stated in the headline.