360 Park Avenue (Park and 23rd Street)

[ustonapc]

Dear all,

The Canadian Pension Plan Investment Board just sold its 29% stake in this New York office building for $1.

The 26-floor building in Manhattan stands at 360 Park Avenue South and was purchased in 2021 with plans to redevelop it.

The pension fund had already poured $71 million into the property and the building currently has a $220 million mortgage.

Boston Properties, the acquirer of the pension fund’s stake, said the project needs “a change in strategy.”

Office building prices are down nearly 50% from their highs.

There is no excess return or alpha in the US commercial property market in the past decade.

Below is a picture of the building.

Regards
James

[abwillingham]

Maybe unrelated but recent events have caused other large developers/investors to exit NY.

[ustonapc]

Dear all,

Office vacancy rates are skyrocketing:

The latest data shows that the office vacancy rate in the US is about to hit 20% for the first time in history.

Even during at height of the pandemic, office vacancy rates did not break above 19%.

As a result, the price of office buildings is now down nearly 50% from its high.

Remote work has changed the world.

Pls see the screenshot below.

Regards
James