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> defaulted on their $73.8 million loan after being unable to find enough tenants, becoming the latest office owners to throw in the towel on Portland’s struggl
by hsjqllzlfkf 3y ago
> defaulted on their $73.8 million loan after being unable to find enough tenants, becoming the latest office owners to throw in the towel on Portland’s struggling office market.
> Field Office is owned by New York investment bank Goldman Sachs
I don't get it. Even if they can't find tenants, GS has pockets big enough to pay their plans. How is it that they can just stop making payments?
- andrewfromx 3y agoThey are daring them to repo the property. It’s a secured loan but if the thing it was secured with is no longer valuable… probably this ends with millions being removed from the principal of the loan and payments resumed
- adamhooper 3y agoThey'll take a loss on their equity invested because the cost of continuing to feed the mortgage payments until they could lease the space is greater. Likely that they'd never generate enough rent even if full to meet debt obligations, so in that case you just basically hand the keys back and let the bank figure out what to do with it. Having toured this building in '21, it's going to take a long time before the occupancy is high enough to cover any debt service. Outskirts of core office location in Portland, terrible access, delivered the building right before COVID. Just a bad outcome and really unfortunate timing.