Alden Keefe Sampson watched the sun rise over the Charles this morning. He says:
I was jogging along this morning with my friend and all of a sudden looked out to see this brilliant scene. We just happened to be in the right spot in the right time. Surreal moment.
Newsweek explains why the building churns through owners even as its value collapses, and what that means for the state of American commercial real estate (hint: it's not good):
... The saga of the Hancock Tower may seem like a classic case of how, when you're using lots of debt, the difference between genius and idiocy can be a matter of luck and timing. Highly leveraged bull-market traders always get caught out when there's a swift correction. But among property magnates, Lawlor was merely the first—and he wasn't doing anything the lions of the industry weren't. ...
Highly motivated seller, plenty of charm make this Back Bay cutie a once-in-lifetime steal.
Thoughts: I'm not surprised to hear about this happening. Just like people investing at the top of the residential market, some investors are bound to be burnt. What I still don't understand is why some companies still pay the $60-100/sq. ft. to be in a building in the middle of a city. If your company has no need to be near a city, why pay those prices? I think after this downturn you will see a lot more office construction outside of cities.
follow more of the breaking developments here.
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