40 Stories for $13 Million?

Did a 40-story building sell for just $13 million?  No, it didn’t.  A story out of Fort Worth gained a lot of attention recently as headlines blared that a skyscraper worth $138 million in 2021 had just sold for only $13 million.  But it’s wrong.  You see, there were multiple loans taken out when the property was purchased.  The biggest loan was $68 million.  There was a smaller loan with a $13 million balance.  The owner defaulted on the smaller loan which triggered foreclosure.  Whoever bought the building at auction would have to assume responsibility for the $68 million loan as well as $1.6 million in mechanic liens.  There were no bidders, so the holder of the $13 million loan is now the owner of the property and the associated $70 million in debt.  While the building is certainly not worth $138 million anymore, to say it’s value fell to $13 million is flat out wrong.  I don’t talk a lot about commercial property, but I thought this one was interesting.

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