The Massachusetts commercial real estate news wasn't at all pleasant, up-lifting, or encouraging this past week. Seems we are going from very bad to much worse.
The Polaroid site and iconic building in Waltham, MA and on Route 128 hit the auction block this past Friday and the results were ugly. A German bank held the $88 million dollar note and one bidder offered $26 million and the bank bought it back at $42 million.
Unfortunately, and in my opinion, this will set the stage for commercial development, many more months to come. We have a long way to go before the commercial sector even thinks of getting better.
The New York Sunday times today also threw some cold water on even a mild recovery as they say that it's possible than many more smaller and mid sized banks will fail between now and 2011.
These local financial institutions are holding commercial notes on deals that have grown sour and distressed with the lack of market activity.
The only good news in all this is that down the road there will be some real good buys for those with cash or those lucky few who will be able to obtain financing.
Bill McInerney
1 comment:
Its true more distressed commercial real estate to come. Massachusetts banks however are in a lot better shape than many of their counterparts nationwide. Our bank research tool shows a minimum of 5X increase in the amount of commercial foreclosures in the pipe and much, much more in construction.
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