Flash crash in NYC commercial real estate?

[Why_Yes_I_Do]

A tale of two cities commercial real estate value since the egregious commercial real estate fine in the Trump case in NYC. Perhaps you recall this article from 2014:

Canadian pension funds snap up New York towers

Ivanhoe Cambridge and Canada Pension boost commercial property holdings in Manhattan
Published: 4:49am, 2 Jul, 2014

Canada's two largest pension funds are expanding their holdings of New York real estate, announcing separate deals to buy stakes in Manhattan office towers...

Ivanhoe Cambridge, the Montreal-based real estate unit of pension fund Caisse de depot et Placement du Quebec, agreed with its joint-venture partner to acquire a 49 per cent interest in 330 Hudson St for about US$150 million, according to a statement.

Canada Pension Plan Investment Board, the country's largest pension fund, is taking a 45 per cent stake in 1 Park Avenue, controlled by Vornado Realty Trust.

Canadians were the biggest foreign buyers of commercial property in the US last year and the second-largest in New York, behind the Chinese, according to Real Capital Analytics.

Ivanhoe Cambridge has made five US office deals through its partnership with Callahan Capital Properties as it seeks to boost its real estate investments...

But did you catch this news this week?

The office market is so bleak that Canada's largest pension fund sold its stake in an NYC building for $1

• Canada's largest pension fund sold a stake in a New York building for $1.
• Crashing office values have led investors to turn cautious on the sector.
• Office buildings have suffered from the pandemic's work-from-home boom.

The Canada Pension Plan Investment Board, the biggest pension in Canada, has completed a string of recent deals at discounted prices, including a sale of its stake in a New York building for $1, Bloomberg reported Tuesday...

...At the end of 2023, the group offloaded its 29% stake in 360 Park Avenue South for a buck, selling to one of its partners, Boston Properties, who also took on the pension's share of debt on the building, per Bloomberg. The plan at the time of purchase had been to redevelop the 20-story office building.

The pension also sold a 45% stake in Santa Monica Business Park, the report said, for $38 million at the end of last year. That represents about a 75% discount to what was paid at the time of purchase in 2018. ...

So in Santa Monica they took a bit of a hair cut (75%), but still put $38B in their pocket. In NYC they only got a Buck. Clearly the covid is a factor, but why such different losses between the two coasts? Engoron-effect?

[Salty Again]

They're Running - they're running - they're going away Ha Ha - Hee Hee!
They're Running - they're running - they're going away Ha Ha - Hee Hee!
Can't tax 'em, you see Ha Ha - Hee Hee! ... Can't tax them -'cause
They're Running - they're running - they're going away Ha Ha - Hee Hee!
And we're sitting here - and laughing with glee - 'cause
they can't tax 'em, surely can't tax them, you see - cause of the fact
they're running - they're running - they're going away!

... I surely hope that clears it up - as the banks and businesses
will now decide to look elsewhere for their Real Estate ventures.

#### Salty