Deutsche Bank has taken a significant $350 million loss on a Manhattan office building located at 222 Broadway. The bank originally purchased the property for $500 million in 2014 but recently sold it to a joint venture led by TPG, Skylight Real Estate Partners, and Cannon Hill Capital for $150 million. This substantial loss underscores the ongoing struggles in the office real estate sector, particularly in Manhattan, where high interest rates and loan maturities are exacerbating financial difficulties for investors. Additionally, hotel executives are eyeing empty office buildings for potential conversions as demand for hotel space increases. The real estate market's challenges are further highlighted by a capital crunch and the inability of developers to secure financing for new apartment projects during a major construction boom.
📣A venture of TPG, Skylight Real Estate Partners, & Cannon Hill Capital Partners pays what is said to have been more than $100 million for the 205,000-square-foot office building at 101 Franklin St. in Manhattan. Sign up #TreppRundown👇 https://t.co/t0ZDHq6hSI
Office Buildings’ Losses Are Growing, With More Pain to Come - The New York Times #office #cre #commercialestaterealestate https://t.co/hmGlAWu5i1
Real estate investors are getting wiped out as high interest rates persist and loans come due https://t.co/JPDaP85aAY
Why a Big Capital Crunch Is Coming to Commercial Real Estate https://t.co/onoYYrzd4e
During the biggest apartment construction boom in decades, a growing number of developers can’t make the numbers work to get started on their project, or can’t get the money to complete them via @wsj's @_willparker_ https://t.co/dS8MOWqQz3
The office real estate sector is still in deep trouble—and these two numbers explain why, writes Meghan Malas. https://t.co/OJ3AVKZveQ
$DB takes a $350mn loss on a Manhattan office building 🏢 that likely will be converted to residential "DB paid $500mn for the tower at 222 Broadway in 2014 They just sold the building to a TPG JV for $150mn" https://t.co/g8cM6VZCJo
Hotel executives set sights on empty office buildings as supply lags demand https://t.co/bEQsQrM8dk https://t.co/oUVvtsEbNf
This is absolutely insane... Deutsche Bank takes a shocking $350M loss on a Manhattan office building DB paid $500M for the tower at 222 Broadway in 2014 They just sold the building to a TPG JV for $150M The office meltdown in Manhattan has gone from scary to disaster for… https://t.co/j6YUb6GJxm
A Wall Street alternative asset manager is ramping up lending in an area of real estate considered too risky by private credit players https://t.co/nY6lVN8Oy8