Posted by: BayAreaComRE | November 23, 2009

Sourced: “Debt Holders Suck Up Big Losses in Shorenstein San Francisco Buy”

From the Registry (linked here):

“Holders of millions in securitized debt and the pension-fund advisory arm of insurer Prudential Financial will swallow hard with the sale of 188 Spear St. in San Francisco.

Even as Shorenstein Properties scoops up the nearly 150,000 square-foot office building for what seems a bargain rate, the debt holders are looking at an aggregate loss of $18.2 million.

Shorenstein was to pay $25 million or just shy of $170 a square foot for the property. That is well less than the roughly $42.1 million that was owed on its two outstanding mortgages. The first consisted of an $18.9 million securitized loan; the second, a mezzanine loan of $23.2 million, was provided by Prudential Real Estate Investors.”

Remainder of story linked here…


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