Earlier this week in the 4-1-09 issue of the National Real Estate Investor, I spied this article by Sibley Fleming. Trying to keep a positive view of today’s downward economic spiral especially in our beloved commercial real estate market, can be daunting at best. The tallest and albeit the most famous building in Boston - John Hancock Tower - was sold at a foreclosure auction in NYC. The $660.6 million purchase price was half of the purchase price paid 3 years ago. This also included a parking garage with 2,013 parking spaces and retail space of 25,642 sq. ft. Sadly, the foreclosure auction lasted 10 minutes and had one bidder.

“The high levels of indebtedness that commercial properties incurred during the past cycle are adding tremendous pressure in the current downturn, given rising vacancies and falling operating incomes,” says Kyle McLaughlin, a Reis analyst. The property’s value before this most recent sale was estimated by Reis to be in the range of $650 million to $750 million.

To read more on this and insights on commercial rents and property values, go to http://nreionline.com/finance/news/distressed_sale_hancock_tower_0401/?disqus_reply=773593Pete@ConsultPete.com1#comment-7735931

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