3 ms·
Here's a better article covering this situation: https://wolfstreet.com/2024/08/01/values-of-old-office-towers-go-to-near-zero-but-the-land-has-value-ubs-gets-b
by unpythonic 2y ago
Here's a better article covering this situation: https://wolfstreet.com/2024/08/01/values-of-old-office-towers-go-to-near-zero-but-the-land-has-value-ubs-gets-black-eye-new-york-times-makes-reeking-mess-of-it/ https://wolfstreet.com/2024/08/01/values-of-old-office-tower...
Unsurprising that a building's value goes down over time while the land on which it resides appreciates. The 97% discount is a comparison of the building price versus the building + land price, so the 97% isn't very relevant.
- tootie 2y agoThe building underwent a a $76M renovation in 2021. So, this is absolutely a huge loss in value.
- chrisco255 2y agoStill pretty surprising. Buildings often go up in value over time and it's often the building that gets more appreciation than vacant lots. NYC is a special case, however, because land is so scarce in Manhattan. It's also frequently the case in NYC that different parties own the land than the building.
- hankchinaski 2y agoInsane that building gets depreciated in the balance sheet