What are older office towers worth? San Francisco provides an example.

Wolf Street/Wolf Richter/5-9-2023

aerial photo of San Francisco skyline“Now we have the first sale in the new-era of working-from-home and office-downsizing in San Francisco, which has surpassed Houston and Dallas as the worst major office market in the US. There are a number of office towers on the market. One of them, the headquarters of Union Bank at 350 California Street in the Financial District, has found a buyer.”

USAGOLD note: Richter says that Union Bank building was first listed for $250 million in 2020. It pulled the listing in 2022 and then relisted at $120 billion in early 2023. It recently sold for between $60-$67 million – 75% below the original offer price. The sale, says Richter, “is sending cold shivers down the spines of Commercial Mortgage-Backed Securities.”

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