November 20, 2009
Morgan Stanley has officially handed the keys back on the Crescent portfolio we posted on last month. Including debt, Morgan picked up Crescent Real Estate Equities for $6.5B. The portfolio consists of some 17M SF of commercial and hospitality product. After providing Morgan with a 3-month extension back in August, the calling for the portfolio came this month and Morgan decided to hand back the keys. They probably realized that their basis was so high there was literally nothing that could be done.
What’s interesting is Barclays and the man who sold the Crescent portfolio to Morgan have now teamed up in a JV to take back and operate the assets rather than fire sale them. Amazing timing on the part of John Goff to get out, and round-trip back into the assets only 2 years later. What is hilarious is that Crescent was losing money even before Morgan Stanley acquired them, so you can only imagine what sort of bleeding MS was experiencing more recently.
Most of the office portfolio was concentrated in Texas.
- Morgan Stanley to Take Hit on Crescent
- Crescent Down, San Francisco EOP Assets To Go
- More News About Morgan Stanley’s SF Woes
- Clock Ticking For Morgan Stanley Fund V
- Morgan Stanley Handing Back 1.2M Square Feet of SF Assets