On Tuesday, we asked: Is this the start of a commercial real estate firesale in crime-ridden Baltimore City?
And to our surprise, it appears so.
Let’s begin with our report on Tuesday when The Baltimore Sun revealed a 30-story office tower at One South Street in downtown Baltimore that was sold in June for $24 million, a 63.6% discount versus the tower’s 2015 sale of $66 million. This was the first sale of its kind in the post-pandemic era.
And one day later, a new report surfaced via the Baltimore Business Journal that indicated another office tower had been panic dumped at a 69% discount.
1 E. Pratt St. has sold for $55.1 million less than it last traded for — marking the second office tower in Baltimore’s central business district to change hands this summer at a steep discount as the troubled local office market resets.
MCB Real Estate shelled out $25 million for the 10-story office and retail development at Pratt and Light streets, according to three sources familiar with the transaction that is not yet recorded in state property records. The tower last sold in March 2018 to a subsidiary of Banyan Street Capital for $80.1 million, records show. -Baltimore Business Journal
Those that have $$$ can.
Those who don’t have $$$$ just wish and can’t get out.
Rest of us, just stay far away!
Salisbury gives away property at 99% discount!
My money says the 5 year call on commercial real-estate loans was up this year. Think about the payment jump on 66 million with a 3 plus percent interest move while you are locked into leases at x. This will keep happening as the loans are called at the 5 year mark. Most do not realize when you buy commercial property it is not a 30 year fixed note like on a house. It’s a 20 year loan that calls every 5 years and gets adjusted to current rate.
Only to certain buyers 4:01
When is the City of Salisbury going to fix Mill Street ? It has been a disaster for years and years, and is no doubt the worst street in town by far. It really is a outrageous how Salisbury can waste money on rainbow roads and bicycle lanes but can’t fix a short road that has 6 very lucrative businesses on it.