Mervyn’s HQ Being Sold

Mervyn’s former HQ building is being sold off by a receiver. The receiver has hired HFF to market and sell the asset. The receiver is John Connolly Partners.

Globe St. has a write up on the 336,000 square foot project, which sold for some $196 psf in 2007 based upon a long term lease commitment which didn’t last very long.

That property is a real turd, and the deal underscores the importance of considering residual values when buying (or lending on) commercial property. I’d be very surprised if they get $30 psf for the department store turned office building given the lack of visibility the site has from 580.

[via Globe St.]

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