San Francisco office tower sells at steep discount
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- เผยแพร่เมื่อ 23 เม.ย. 2024
- A San Francisco office tower that once served as the headquarters for Burning Man and leasable office space for WeWork has been sold at an eye-popping discount. Sergio Quintana reports.
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This news report is VERY misleading. That SF old building (955 Market Street) was NOT available for public sale. This was a foreclosure, because the former owner (Bridgeton Holdings) defaulted on a loan, from Florida-based LNR Partners. LNR Partners then sold the property to themselves in a private auction for $6.5 million (LNR gave themselves that 90% discount). In other words, Bridgeton Holdings was forced to sell a $62 million building for a meager $6.5 million to cover a debt. And this ignorant reporter FAILED to explain any of this facts. Talking nonsense about property prices, instead of telling the public about this blatant example of corporate greed.
Details, details… you are so right!
Legacy media. Scare people, misleading people, lie to people, has been their way of operation forever
How did they make money off selling themselves a building for a 90% discount I don't get it the money never changed hands.
@@ZedBeiFengTaking a massive write down in building value may help them if they anticipate holding onto it (e.g. renovating it and then reselling it), and don't want to pay high property taxes in the meantime. Having the loss on their balance sheet may also be useful for tax purposes (since losses may offset taxable profits from other parts of their business).
@@jofujino Thanks
someone buying that building for 90% off is Not a good sign LOL
only one way to go from here... up
@@stevez5134or down.
It is a big sign. That sign says "BUY!". It might not be the time to expect renters to rent the offices. It is the time for those wanting good future investment commercial real estate returns and space to take hobbies out of storage lockers and living spaces at home. About the worst thing a failed dream business does is make a good tax right off. The best thing is you get to sell the business and rent out the office space you created it in. Be the inspiration.
I think it's a great and terrifying sign. It'll suck getting through the bubble burst but usually the economy is stronger for it in the end and I'm still reasonably young so I'd rather go through it now then later.
I'm sick and tired of corporations getting away with hyper-inflating the housing market.
Exactly. Not only San Francisco but everywhere
90% off for a building in SF is not a sign of a turnaround 😂😂😂 Spin spin spin
Perhaps not, but it certainly reflects reality.
Dude who thinks it’s the bottom is delusional since the bulk of commercial buildings haven’t been revalued. Wait till more sell as vacancies persist.
can't go to 0
@@lionheart93
Those buildings have been vacant for years
So
Until someone offers to buy them
They are at Zero
They ask random bums like they really know anything about real estate or anything about finance 😂😂😂😂😂 “yeaaa Mannnnn ......dat cooool”
That's the only type of people in that area lol
😂😂
Hahahaha. So true!
Funny😅
Sell it back to the California government for $45 million so they can turn it into a junky homeless shelter.
Why not just turn it into condos. That normal people can afford.
@@user-pg3ti3vc5g because you can make more money selling to the government.
@@user-pg3ti3vc5g You can't turn office buildings into condos because the plumbing for one floor is like two bathrooms (one male one female). If you turn it into condos, you can't put new plumbing in and so you'd have half-penthouses every floor, which is an idea I'm all for.
@@XC-Z-cv8qw I am thinking you could do 4 apartments per floor, assuming the two bathrooms are separated on either side of the elevator. Two apartments would have a boundary at one bathroom, do the layout so the new bathroom(s) and kitchens are close together, for minimum rework? I am thinking 4000sqft usable per floor means 4 x 1000, possibly a little more by shrinking the common room.
A possible problem might the placement of stairs, whether all apartments have access
there might also be plumbing for a breakroom?
they could just not say anything and low key move like 40-50k migrants in there for 300$ a pop per month
And right on cue they bring in the local RE cheerleader saying the well heard line...”I think we’ve reached a bottom.” Ok...we’ve been hearing that one for awhile, and no one is talking about the trillions in CRE loans that were courtesy extended but are now needing to be refinanced at the new high rates....with still no tenants. Get ready folks, we haven’t even seen the meltdown yet.
This.
And the CMBS' are a time bomb.
The Editor was mocking the RE. Letting him pipe up like a pull-back tin car.
Entire state is suffering from Leftism, SF is the epicenter.
American government and investment ideas are extremely absurd
The seller got a steal for selling it 90 percent off, I was thinking 99.999% would be appropriate given what happening
that’s still a bad deal, who wants to live or work in that area
They have gentrified many areas before.... not a bad deal long term...
Yup they have plenty of time to sit and wait on the market it's cyclical but 6th streets been crap forever 😂
They bought that building to make phantom income.
People need housing.....If it was subdivided into units then I would buy one if the price is right.
@@02nupe Gentrified in SF is not a positive thing. In SF it means that the homeless and drug dealers/users move in. If you really want to know what gentrification is; go visit any vibrant town in Europe.
A bank ate the loss. As the commercial property prices drop so will the banks.
You'd think the banks would be more careful about throwing these loans around..hmm
No…. The buyer assumed the old loan. If you think a bank wrote off $50m you’re delusional.
@@hobear637 right lol. The seller obvioulsy took the loss just like the seller of a house
@@Dr_KW Why? They all got a bail out and the executives got fat bonuses.
Hitting the bottom is a good sign that things are not getting worse? I suppose they’ll grasp at any spin.
Whoever paid $6.5M for that building will likely have to sink another $20-25M in maintenance and remodeling to make it attractive to a large tenant again. It’ll likely take years for the turnaround, especially at the corner of shithole and craphole.
Interesting point. Odd that this segment didn't mention the caveats to this. Maintenance and remodelling is big deal.
yes i think its a plan, they pummeled san fransisco , all they have to do is restore law and order and it will easily go up again, the area proximity to everything
A new good mayor could turn around the bad parts of San Francisco in a couple years.
@@raybod1775 A good mayor could probably turn around the recently nice parts of SF in a couple years. The bad parts are decades out if not forever given how messed up the BOS is.
@@F22ERaptor I'm not surprised. These reporters only like to put out clickbait headlines, even on stories they know nothing about. They need the paycheck so I get it.
Just turn it into homeless housing and sell units to LA. LA is paying 1 $million per unit.
That’s probably what they are doing
I guarantee you this will become migrant housing.
This has nothing to do with LA! Why are Bay Areans so obsessed with LA?
Inferiority complex!
You can't turn office buildings into condos because the plumbing for one floor is like two bathrooms (one male one female). If you turn it into condos, you can't put new plumbing in and so you'd have half-penthouses every floor, which is an idea I'm all for.
@@XC-Z-cv8qw wrong - adding plumbing is possible and overall cheaper than a new construction … and faster. There’s another 7m coming
If only CA Residential real estate was 90% off.
Wait for the wildfires 🔥
No homeowners insurance…
Discounts 🥳🥳😃😃
Give it time.
@imzjustplayin wouldn't happen because millions of people would try to buy which would just bring the value back up
They will until they figure out the CA Demo-crat three step tax plan: 1. Declare how much you made. 2. Declare how much you've got left. And, 3., Give them that amount. ... Then, wait for your local County Assessor to hand you your 8% property and 2% sales increases. ... All on top of the Manson tax and the 2-8% fast food wage increases. ...
Haha not happening.
I read an article about how California needs 2.5 million homes by 2030 due to insufficient housing.
They are only building 100k year .
SF is not “struggling,” it’s collapsing.
Which companies want to open offices in SF where there are homeless and drug users everywhere.
Turn into gov sponsored homeless/drug rehab housing
Everywhere? You sure about that?
None
Purdue Pharma
You should see Texas. It’s a real dump.
100% tax fraud. I guarantee you some company is writing it off as a loss to offset their taxes. Andddd…Let me guess, the company selling it as a loss also somehow is connected to and funded the new owner of the property. This for sure is tax evasion. No property owner would sell for cheap in such a high priced market.
Or money laundering
they would if they have no money to pay taxes , its either get something or nothing.
although the place is prime location , eventhough its a high crime rate place.
Lot of uneducated comments here. The building sold at a 90% loss, but the buyer assumes the debt including loans taken out on the building. Technically yes, the sale price is at a loss, but the new owner still assumes the previous loan of the building. No way would a bank just forgo the initial loan during escrow.
This office building was already obsolete. Built in 1908 (must of been reskinned in 1960s). It will take a complete gutting to renew all the mechanicals and delete as asbestos. Not a bargain and a potential money pit if not carefully managed.
PS - Hope reuse project works out.
That's a discount that can work for conversion.
Wonder how that's going to effect tax revenues for the city?
This is somewhat common, for older buildings. In midtown Manhattan, it's common for buildings built, say, after 1950 and before 1990 to sell at steeply discounted rates. Why? Most businesses don't want older buildings. Now, in newer buildings, there are cafeterias and pickle ball courts. In older buildings, some may not even have air conditioning. Most likely, this is either going to be torn down or converted into a mixed use building.
But I am sure that crime in Manhattan and the New York area has no influence on the price there either.
@@willskol It doesn't. If you think so, it's easy to find data that shows the price of a sale of.a building is directly correlated with its age.
@@posthocprior Flat Iron Building, why is it still vacant?
I can’t believe how much SF downtown has been gutted… I just visited Philadelphia and so much more alive and normal people walking around with plenty of open stores
I worked 3 blocks away, and I must tell you, no one will have a office here, 6 million is also on higher side, this street is dead 😵
The new owner will sell it for 90% discount a yr later.😢
Convert to dorm style housing and bill the government to house undesirables?
Taxes are insane they need to get out
shoot, what a bargain! would've bought it for $6.5m and turn into an luxury apartment
I don't believe any company wants to move to San Francisco.
I would like to point out how people cant afford rent but i wonder why whoever bought it got a discount. Rubbing elbows
6M? Thats pretty crazy. My cousins own homes in the Bay area which are almost $3M each. They could have bought this building instead.
This is the start point of a downturn but then they ask when will the turnaround begin? That was so much spin, my head spinned off.
Still a bad deal 😂 they can't do anything with that building.
does it come with al fresco bathrooms outside too?
It's on the new owner's bucket list to own a highrise commercial building in SF, checked.
Ha! 20 years ago I ate in the restaurant on the first floor. Surprised to see it on the news.
Shout out Jerry Rice with the flat cap 🙌😅
Turn the building into condo units.
Good. May the asset bubble continue to pop.
Wow!
Residential rental prices remain the same?
and it starts
That's tell you that they are in a big trouble in that area.
Local rich (not the richest) became middle class and middle class became poor.
Of course for those who benefited from the pandemic then it would be a different story.
Turn around requires a positive uptick. The direction is still down.
Deep discount would be a great shelter for the tenderloin.
Recovery? 🤣😂🤣😂🤣😂🤣 This is only the begining.
Property taxes are killing owners in Metro areas. Can't get the price per sqft anymore.
Why didn't they put that building at the auction?
Meanwhile in Florida our cities are thriving with low crime, clean streets, low unemployment, almost no homeless, and on and on and on…
Drizzle drizzle 😂😂
?
They must been more to the deal property swap and something. The building needs renovations. Even at that exact challenging location it still corner lot on market street. Hire security and do what ever it takes ride it out financially. I see a lot improvement, new restaurants and clubs in area in the tenderloin.
That is about 80K a month interest - now add all the other expenses
Damn the new owners must be planning an epic pizza party to convince workers to come back
Convert it to housing and make your money back. There's no way you occupy businesses unless you get startups to occupy it
That's the same price as three to five 700sq feet condos in san Francisco
Hahaha, this is worse than my worst investments. Good to see someone else feel the pain. 🤣
Turnaroud, no turnaround.
All I have is "Yikes". Doesn't feel like a win. Doesn't seem like things are getting better.
Commercial real estate may not be so bad as it seems. Employers have found that 90% of their employees are less productive with too much work at home, so more are going back into the office at least 3 days a week.
What overseas businesses wants to rent retail in San Francisco ? Amazon warehouse had replaced both retail and office spaces. The building will be repurposed as residential.
why didn't Snoop Dog or Dr Dre, opera ,50cent or shan nany, buy it to house the black and low income community?
That building's carrying a lot of hidden debt - the sticker price ain't telling the whole story .
But what are the ongoing expenses of the building? Taxes and maintenance? They have to have the ventilation temp control systems running all the time or the building will mold. If they can't find tenants, then it's not a good deal.
Is the property tax based on last sale price or as assessed value. Empty or not the new owner is probably paying tax on a value if 70m.
Convert to residential maybe...... older buildings are the ones that are easier to convert from what "experts" say.
SAD!!! SF will never be the same.
I'm sorry did the reporter just say that there is turnaround just around the corner, where did she get that.
There's probably more issues with that building than 90% off can fix
That location is eye-popping get your eye literally popped out
They sell it low then the city will claim the building is worth more so they can get more property taxes
Where are the ten AI companies London Breed parades😂?
London Breed is delusional...
She went to China to receive the pandas on a nice trip paid for by taxpayers in SF. She doesn't understand business and has no charisma.
She’s worried about pandas right now.
quick sale bc owners wanted to get out of city politics, pay property taxes, paying homeless ngo's, all of which is a headache that the new will deal with.
That 90% loss is gonna be reflected somewhere, some way
Another fire sale. I love the news lady's spin on this. "There's a sign a turn around may be coming". Yes, the owner can rent space at 35 percent of San Fran's average, but with declining demand and bad location, there won't be many takers. San Fran laws don't allow tax abatement, even for catastrophic decline in value. It's a turning point alright.
Did he say the building was built in 1908? I don't think so.
Thank you Mayor Greed and the city hall supervisors, just laughing and collecting their paychecks as San Francisco gets destroyed.
Yes! Change of Ownership.
90 percent less real estate tax revenue for city and less money for city services like police and roads.
You have check it open market sale or sale between friends/relative to reduce tax payment to local govt.
1:19 is this the best shot this reporter could have come up with?
Like they always say “The neighbor makes it affordable”
San Francisco's a Toilet 😅😅😅
SF is circling the drain.
San Francisco is how not to run a city. Conventions are changing venues, major and small businesses have left, tourism is down, drugs & crime are up. Office and hotel buildings are having their mortgages walked away from / surrendered by property firms. I saw the movie Mrs. Doubtfire last week and jokes in the movie aside kept saying to myself San Francisco was so nice, WAS. It seemed safe, nice, and hade a good energy to it emanating from the film. My how how that has changed. The current administration should be sacked for a different administration perhaps.
Buyers don’t care. They already moved either to Texas or Colorado. SF definitely has seen better days. Sad to see it crumble like this and it’s still ongoing.
"When it was first built in 1908" (1:04)? Looks pretty high tech for over 100 years old. Probably needs some upgrades, hence the discount. Nice reporting.
Hit bottom? At some point, the owners of S.F. commercial properties will need to pay a buyer to take the property. Don't scoff. It will happen.
Land value? There’s always more to a story like this!
Not to joke about a dire situation but a turnaround is far from what Alexander thinks. There are so many issues in the bay area. However, if I owned a company out of state and want to get a prime spot in san francisco, I would do it now, lowball the heck out of the owners of those buildings for a long lease contract.
i had a boyfriend who rented near there. his neighbor committed suicide and the place smelled for days. he moved out and left the area completely. theres sadness there
I remember how they used to boast about a billion aire property owner who owned or managed many properties in SF. He would have the security rooms painted black and was particular on many things. He would go on tours of his buildings like a hot shot. I wonder how hes doing now.
We have not seen the bottom. This is the beginning of one of the worst recessions in the history of this country. SF should be very concerned with a substantial reduction in revenue coming via property taxes. Just the beginning and it's about to get worst.
You’ll need $6 million a year for security to make it usable
1:18 LOL
Imagine SF being the new Detroit. lololol
Goes to show nothing was holding it up.
“Penthouse” In the center of zombieland
Can I buy a office and live insider? it sounds bargain. I mean office have water and washroom.....and rooms (conference)
Based on architectural point of view
Its worth the price
Of course there’s something under the table there
😉 Even San Francisco news reporting has reached rock bottom, weirdly asking street bums who couldn't do easy math what they think about real estate deals.
Because you can earn now through internet. Even payments are made through there.
Apartmentification is the new trend.
Plenty of hopium here. Plenty of interest is the same as lots of potential.