Know When To Hold Them, Know When To Fold Them

Blackstone, the world’s largest owner of commercial real estate, owned 1740 Broadway, New York, an office building that was appraised in 2015 at $605 million, with a $308 million-dollar CMBS loan and the loan is now on the market for $150 million. As reported in Bisnow January 17, 2024, “Blackstone’s handling of 1740 Broadway is one of several stories of distress that continue to play out in Manhattan’s office market. While the greatest source of distress is expected to come from the billions of office loans maturing this year, experts expect more owners like Blackstone to decide to stop making interest payments and cut their losses well before loans mature. Blackstone’s handling of 1740 Broadway is one of several stories of distress that continue to play out in Manhattan’s office market. While the greatest source of distress is expected to come from the billions of office loans maturing this year, experts expect more owners like Blackstone to decide to stop making interest payments and cut their losses well before loans mature. “’These term defaults are going to be an increasing concern as things play out,” David Putro, head of CRE analytics at Morningstar Credit, told Bisnow in September. “I certainly expect more term defaults moving forward.’”  Scary times now and ahead in the office building arena….