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The buyer already had a $45 million mortgage on the property, so while this transaction cost them $6.5 million, they are not valuing the building at $6.5 millio
by jeffbee 3y ago
The buyer already had a $45 million mortgage on the property, so while this transaction cost them $6.5 million, they are not valuing the building at $6.5 million.
- s1artibartfast 3y agoThats not how I read it. LNR was the lender of the old mortgage, and the purchaser of the property. This is like a Bank foreclosing on a home-owner and then buying the house.
- kurthr 3y agoA bank foreclosing and auctioning to themselves at a fire sale price. It really doesn't look arms length, but perhaps it will still be appraised at some higher price.
- s1artibartfast 3y agoI guess that depends on if it was an open auction and if the bank placed the top bid. Sales dont have to be at arms length. It is just that if they aren't, it opens price and sale process to scrutiny for self dealing. it doesnt mean that self dealing occurred.