by Calculated Risk on 2/10/2009 08:51:00 AM

From the Boston Globe: Boston's tallest building faces foreclosure

Click on photo for larger image in new window.

Photo Credit: Tomtheman5

The article notes that the 60-story John Hancock tower is facing foreclosure and is scheduled to be auctioned off next month.

The owners, Broadway Partners, paid $1.3 billion for the building in 2006 and the current value is estimated at between $700 and $900 million. Quite a haircut!

Broadway Partners was an aggressive buyer at the height of the commercial real estate market. From Bloomberg in January: Broadway Partners Talks With Lenders After Loan Deadline Passes

Broadway Partners, the New York real estate investment firm that used short-term debt to buy more than $8 billion of office towers from December 2006 to May 2007, is negotiating with its banks after missing a repayment deadline last week.
...
Broadway ... borrowed $1.5 billion through mezzanine loans to help finance the purchases of two groups of buildings from Beacon Capital Partners LLC, including Boston’s John Hancock Tower. Broadway borrowed the money from Lehman Brothers Holdings Inc. and RBS Greenwich Capital Markets Inc.

More losses for the lenders too.