Commercial prices - ouch

[Chris Seveney]

For those who think it’s not going to get worse - here are two recent commercial transactions

Unfortunately this is just the start. I would also not be very optimistic for those in multi family - not expecting these types of discounts but cap rates have risen and market will catch up to that which will lead to significant decline in valuations

https://www.instagram.com/p/C2GDUs1ut4Y/?igsh=am16djV2bHhpZ2U1

https://www.bisnow.com/chicago/news/office/west-loop-office-near-willis-tower-sells-for-90-percent-discount-122316

[Ronald Rohde]

This problem is specific to office. Not even Class A nor Class C, its unique to Class B office. No one has been surprised who's been buying in the past 5 years. this was a high risk, high return asset class for everyone.

[Carlos Ptriawan]

Quote from @Ronald Rohde:

This problem is specific to office. Not even Class A nor Class C, its unique to Class B office. No one has been surprised who's been buying in the past 5 years. this was a high risk, high return asset class for everyone.

 MF loan too.

[Carlos Ptriawan]

Quote from @Chris Seveney:

For those who think it’s not going to get worse - here are two recent commercial transactions

Unfortunately this is just the start. I would also not be very optimistic for those in multi family - not expecting these types of discounts but cap rates have risen and market will catch up to that which will lead to significant decline in valuations

https://www.instagram.com/p/C2GDUs1ut4Y/?igsh=am16djV2bHhpZ2U1

https://www.bisnow.com/chicago/news/office/west-loop-office-near-willis-tower-sells-for-90-percent-discount-122316

 I am expecting credit event this year. Maybe smaller bank.

CalStr already announced they have liquidity crunch so they need $30B bailout if not they are force to do fire asset sale.

[Ronald Rohde]

Quote from @Carlos Ptriawan:

Quote from @Ronald Rohde:

This problem is specific to office. Not even Class A nor Class C, its unique to Class B office. No one has been surprised who's been buying in the past 5 years. this was a high risk, high return asset class for everyone.

 MF loan too.

 Sure, but its the bad actors who are giving back keys to the lenders. Syndicators who had no idea what they were doing raising money, thats wiped out.

[Carlos Ptriawan]

this is like buying property in 2008 bro, i want to see who is survive lol