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Monday, June 12, 2023 8:15:53 PM
Owners of the former BofA headquarters, which also used to house McKinsey Consulting, 555 California Street in San Francisco — Vornado Realty and Donald Trump — want more time to pay back their loans. Of course the Donald will whine elude and skirt rather than giving the property back to the lenders.
The building complete with "the Banker's Black Heart" sculpture whose official name is “Transcendence,” sculpted by Masayuki Nagare from 200 tons of black Swedish granite - https://www.atlasobscura.com/places/banker-s-heart
The 52-story carnelian building, 555 California Street, is currently 93 percent leased. But many tenants — which include banks like Morgan Stanley and law firm Kirkland & Ellis — will be up for renewal soon in a city where workers have been slow to return to the office. Co-owners Vornado Realty Trust and the Trump Organization have requested more time to pay back the $1.2 billion loan used to purchase the building, according to loan servicer documents.
"I've never seen it so empty," said a financial worker who has worked in the building for twenty years.
The Lowey family's Westfield, the Bronfman family Brookfield and Uniball of France have stopped paying the mortgage on their posh 1.5 million sq-ft San Francisco Mall on Market Street built in 1988, which replaced the old City of Paris which was a copy of the Galeries Lafayette department store in Paris. The $585 million loan is almost certainly syndicated, with the risk shared by a large number of banks.
The lender is probably Merchant's Capital, an affiliate of Merchant Bank, or similar lender like CBRE (Coldwell-Banker Real Estate finance) who securitized the most of the loan out to pensions funds around the world, like Black Rock. The managing lender will have great flexibility in charging lower rents to attract tenants.
Asked about commercial real estate concerns in a television appearance on Wednesday, Treasury Secretary Janet L. Yellen said she thinks banks are “broadly preparing for some restructuring and difficulties going ahead.”
The banks or their appointees will be managing these properties, but I personally very much doubt major banks actually hold much of these loans for their own account. I bet millions of people don't know they own a part of these loans in their retirement savings.
When I was last in San Francisco the entire city had a very residential feel like Pacific Heights where I used to live. The parts of the city that had once been destinations for commuters and tourists were dead quiet. San Francisco is now just a posh urban suburb for people who work in Silicon Valley or work there from their homes in San Francisco.
The building complete with "the Banker's Black Heart" sculpture whose official name is “Transcendence,” sculpted by Masayuki Nagare from 200 tons of black Swedish granite - https://www.atlasobscura.com/places/banker-s-heart
The 52-story carnelian building, 555 California Street, is currently 93 percent leased. But many tenants — which include banks like Morgan Stanley and law firm Kirkland & Ellis — will be up for renewal soon in a city where workers have been slow to return to the office. Co-owners Vornado Realty Trust and the Trump Organization have requested more time to pay back the $1.2 billion loan used to purchase the building, according to loan servicer documents.
"I've never seen it so empty," said a financial worker who has worked in the building for twenty years.
The Lowey family's Westfield, the Bronfman family Brookfield and Uniball of France have stopped paying the mortgage on their posh 1.5 million sq-ft San Francisco Mall on Market Street built in 1988, which replaced the old City of Paris which was a copy of the Galeries Lafayette department store in Paris. The $585 million loan is almost certainly syndicated, with the risk shared by a large number of banks.
The lender is probably Merchant's Capital, an affiliate of Merchant Bank, or similar lender like CBRE (Coldwell-Banker Real Estate finance) who securitized the most of the loan out to pensions funds around the world, like Black Rock. The managing lender will have great flexibility in charging lower rents to attract tenants.
Asked about commercial real estate concerns in a television appearance on Wednesday, Treasury Secretary Janet L. Yellen said she thinks banks are “broadly preparing for some restructuring and difficulties going ahead.”
The banks or their appointees will be managing these properties, but I personally very much doubt major banks actually hold much of these loans for their own account. I bet millions of people don't know they own a part of these loans in their retirement savings.
When I was last in San Francisco the entire city had a very residential feel like Pacific Heights where I used to live. The parts of the city that had once been destinations for commuters and tourists were dead quiet. San Francisco is now just a posh urban suburb for people who work in Silicon Valley or work there from their homes in San Francisco.
We've run out of other people's Social Security taxes needed to subsidize our low income tax rates.
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