June 15, 2010

Commercial Real Estate - Still Closing at Steep Discounts

From P.E.R.E. News:

The Mexican billionaire has bought 417 Fifth Avenue from Goldman Sachs and Moinian Group for $140m – a 56% discount to its 2007 price. Ashkenazy is also reportedly set to close on the New York Knickerbocker Hotel this week for a 46% discount of its 2007 peak valuation.
Mexican billionaire Carlos Slim has closed on a prime New York office building at 417 Fifth Avenue for $140 million, according to Cushman & Wakefield.

The real estate broker said the 11-storey office was bought by Inmobiliaria Carso, an investment company controlled by businessman and investor Carlos Slim Helu. The property was originally bought for $250 million by Goldman Sachs and developer Moinian Group in a joint venture in July 2007, according to data provider Real Capital Analytics.

......Another iconic New York asset is also reportedly set to close this week, with Ashkenazy Acquisition expected to buy the former Knickerbocker Hotel and an adjacent lot on 42nd Street for $173 million. The Real Deal reported that the hotel was originally acquired by Istithmar World, the private equity and real estate investment arm of Dubai World, in 2006 for $376 million.

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