December 17, 2009
We previously discussed the hand back of the keys by Morgan Stanley on some of their SF assets (here and here), but Bloomberg is now out with an article. Not much new, but now Bloomberg lends some credibility.
The San Francisco transfer would mark the second real estate deal to unravel this year for Morgan Stanley, which bet big on the property markets as prices were rising. The firm last month agreed to surrender 17 million square feet of office buildings to Barclays Capital after acquiring them for $6.5 billion in 2007 from Crescent Real Estate Equities. U.S. commercial real estate prices have dropped 43 percent from October 2007’s peak, Moody’s Investors Service said last month.
The article confirmed that AREA will be the successor to Morgan Stanley in holding the assets. Whether they will hold onto the buildings as the market deteriorates will be interesting to see since I suspect most if not all of their equity has vanished as well.
- Round Trip For 17M SF of Property as Morgan Stanley Hands Back The Keys
- Morgan Stanley to Take Hit on Crescent
- Update on Morgan Stanley and Crescent Real Estate Deal
- Crescent Down, San Francisco EOP Assets To Go
- Banks Bracing For CRE Defaults