VNQ - 'Apocalyptic' Manhattan Real Estate Deals Keep Coming — Sector Mayhem Or Investment Opportunity? | Benzinga
Fed Chair Jerome Powell said Tuesday the commercial real estate sector will remain under stress for some time.
"It is a risk that has been with us and will be with us for some time, probably for years," Powell told the Senate Banking Committee. "And banks need to be honestly assessing what their risk is."
Many real estate assets purchased before the Covid-19 pandemic with loans from banks and other financial institutions are now worth less than the loans.
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As a result, many commercial real estate owners are selling their properties in distress, bringing about a new era of opportunity for real estate investors.
Take the Continental Center in New York City, for example. The 41-story skyscraper, located at 180 Maiden Lane in Manhattan's Financial District, sold to 99c, a real estate firm owned by Canadian biotech investor Carlo Bellini, for just $297 million.
The same building was purchased in 2015 for $470 million. Clarion Partners and MHP took out a $248 million loan from BlackRock Inc (NYSE:BLK) and refinanced the ...