Okay, they were not 3 rental properties that Mortimer Zuckerman’s Boston Properties Inc. lost the 165 million on, they were skyscrapers in Manhattan, but still…
How would you like to be the accountant that had to come in and deliver the news to the boss that they have to take a $165,000,000 charge on 3 properties you have held for less than 2 years?
That has to hurt even for a billionaire to hear.
Zuckerman’s Boston Properties Inc. said this week that three Manhattan skyscrapers it bought in May lost about $165 million of value in seven months. Zell exited the office property market in February 2007, selling Equity Office Properties Trust and its more than 500 buildings to Blackstone Group LP for $39 billion in debt and equity, the largest leveraged buyout at the time. It was the peak of the market.
“After that, the world changed,” said Dan Fasulo, managing director at real estate data provider Real Capital Analytics. via Bloomberg.com
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For future reference — assuming there IS a future remotely resembling the quasi-capitalist past — note how mega-cycles end on the concluding of “the biggest deal in history” , etc,etc.
Remember the Japanese that were taking over America’s economy circa 1989 when they bought Rockefeller Center at top-tick ?
….. and Zell selling his giant EOP portfolio into “a hot property market” … yada,yada,yada.
Some real estate ‘expert’ in the know should check the current status of those who Blackstone immediately flipped and dumped Zell’s properties on — all of ‘em in death spiral ‘distressed’ state ?????
Surprised ?