The image you are looking at is the Hancock Building in downtown Boston. It was sold today at a foreclosure auction. What would you bid for this landmark?
In 2006, this commercial investment was worth around $1.2 billion to a group of investors who purchased it, hoping for a solid CAP rate and increased rents from the various businesses leasing space in the tower. Like many properties purchased before the bubble burst, their goals were not reached, they fell behind on payments, and ultimately ended up in foreclosure.
What did it sell for today? A paltry $660.6 million. In case you don't have your calculator handy, that means the new group of investors purchased the property for slightly more than half price compared with the sale price three years ago. Come back in another three years and we'll check on the market value... Any guesses?