Wednesday, December 29, 2010

The Bernanke Money is Flowing: John Hancock Building Bought for Just Under a Billion

Dealbook reports:
The John Hancock Tower, a 62-story glass skyscraper in Boston’s Back Bay, was one of the first real estate trophies to run into trouble when the speculative property boom abruptly ended two years ago.

With the market in free fall, Normandy Real Estate Partners and Five Mile Capital Partners bought the building at a foreclosure auction 18 months ago for $660.6 million, or about half of what it sold for in 2006.

At 4 p.m. on Wednesday, Normandy and Five Mile officially sold the Hancock Tower to Boston Properties for $930 million...
Wednesday’s deal reflects the current optimism coursing through the industry. Commercial buildings have recovered some of their value, and investors are looking to buy solid properties with good cash flow. Commercial mortgage securities also look healthier — although many experts warn of the billions of dollars of loans coming due in the next couple of years.

1 comment:

  1. Made even more valuable since the closing of the public observation deck on 9/11/01.
    Now the Oligarchs can have fancy parties up there and not worry about contact with the stinky peasant masses.