This case highlights the importance of realistic underwriting and independent validation of assumptions. Aggressive projections can make a deal appear financeable, but when market conditions...
This case highlights the importance of realistic underwriting and independent validation of assumptions. Aggressive projections can make a deal appear financeable, but when market conditions differ, the consequences can be significant for investors.
The lawsuit alleges that JLL repeatedly increased projected NOI to meet financing requirements, while the property ultimately sold for $30.5 million versus a projected stabilized value of $51 million.
Even sophisticated investment firms with strong risk-management systems can face significant losses when concentrated bets go wrong. The Jane Street situation is a reminder that...
Even sophisticated investment firms with strong risk-management systems can face significant losses when concentrated bets go wrong. The Jane Street situation is a reminder that risk management must account for unexpected correlations and liquidity pressures.
Jane Street reportedly suffered about $15 billion in losses in July, its worst monthly loss, despite generating more than $40 billion in revenue through July.
The sale of One East Delaware illustrates how higher financing costs and changing property valuations continue to reshape real estate returns. Strong occupancy and rental...
The sale of One East Delaware illustrates how higher financing costs and changing property valuations continue to reshape real estate returns. Strong occupancy and rental growth do not necessarily protect investors from a decline in asset values.
Golub & Co. and Alcion Ventures sold the 304-unit Chicago property for $130 million after acquiring it for $146 million in 2016 and investing approximately $30 million in renovations.
The loss on 600 California Street demonstrates how declining office values can move through the capital stack and affect even investors who believed they were...
The loss on 600 California Street demonstrates how declining office values can move through the capital stack and affect even investors who believed they were holding relatively secure debt. Asset quality and location alone cannot eliminate refinancing and valuation risk.
Investors in a $240 million CMBS deal tied to the San Francisco office tower received less than half of their original investment after the underlying loan was sold at a steep discount.