Business is booming.

New York City office deals abound

A recent report showing potential investment bonanzas in the financial district of New York City sought to reconcile the high risk innate to such deals with the potential for high reward. For the skeptical, a list of recent office and hotel purchases shows the steep discounts at close of sale.

From Fear to Fortune” detailed the drop in value of commercial real estate in Manhattan, a decline resulting from a “perfect storm” of factors – higher interest rates, inflation and a tenant exodus resulting from remote work prompted by the spread of COVID-19. The report was prepared by Chris Okada (pictured), CEO Of Okada & Co. In a recent interview, he cited the example of a building on Fifth Avenue that recently sold for $400 per square foot – down from its peak of up to $900 per square foot.

And that’s just one example. There are many more, Okada said. “We’ve started to see some incredible price discounts not seen in 14 years,” Okada told Mortgage Professional America in a recent telephone interview. “With discounts ranging from 30% to 60% off peak pricing, we feel there are remarkable opportunities in this asset class.”

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