• Big Office Buildings Selling CHEAP - 2020s Biz Model Goes Elsewhere

    From 68hx.1808@21:1/5 to All on Mon May 13 00:46:15 2024
    XPost: talk.politics.misc, alt.business, alt.politics.usa

    https://www.dailymail.co.uk/news/article-13409753/burnett-plaza-fort-worth-texas-building-sold-price-drop.html

    The tallest building in Fort Worth, Texas has sold for a mammoth
    price drop.

    Burnett Plaza was purchased in a foreclosure auction for
    $12.3million just three years after it was sold for more
    than $137.5million.

    The 40-story building was bought by Pinnacle Bank Texas
    during the auction at the Tarrant County courthouse on
    Tuesday.

    According to public records, Pinnacle claimed that the
    building's previous owner, Burnett Cherry Street LLC,
    an affiliate of New York-based Opal Holdings LLC, failed
    to pay a $13million loan that was used to purchase the
    tower in 2021.

    This is the latest in the country's commercial real estate
    ticking time bomb problem as office buildings across the
    country remain empty or sell at drastically low prices.

    . . .

    This is becoming a BIG problem for banks/lenders. SO much
    money was put into these giant office buildings - but now
    that model of biz is fading away. It's partially because
    of remote working, but not ONLY because of that. Smaller,
    more affordable, better-placed, biz offices are becoming
    the norm. The "prestige" thing of a huge glittering
    building just doesn't quite fit the 2020s.

    SOME of these structures can be re-fitted into apartment
    buildings ... and at present there IS fair money in those.

    Now, in ten or twenty years, perhaps the giant glittering
    building with yer logo on it may come back into favor.
    Alas we have to WAIT and SEE. MEANWHILE a LOT of investments
    and loans for such are gonna be a serious drag.

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