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Remarkable price. 6.5 million is only the price of 3 San Francisco homes for 90,000 sqft.

If you fund the purchase with debt and assume a interest rate of 5%, you are talking 325k/year for the building.

I wonder what the upkeep costs are? I wonder what the depreciation schedule looks like for office buildings.



The buyer already had a $45 million mortgage on the property, so while this transaction cost them $6.5 million, they are not valuing the building at $6.5 million.


Thats not how I read it. LNR was the lender of the old mortgage, and the purchaser of the property.

This is like a Bank foreclosing on a home-owner and then buying the house.


A bank foreclosing and auctioning to themselves at a fire sale price.

It really doesn't look arms length, but perhaps it will still be appraised at some higher price.


I guess that depends on if it was an open auction and if the bank placed the top bid.

Sales dont have to be at arms length. It is just that if they aren't, it opens price and sale process to scrutiny for self dealing. it doesnt mean that self dealing occurred.




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