Commercial Mortgage Default: Bought for $1.3b John Hancock Building in Boston Expected to Fetch $700mm or Less at Foreclosure Auction

John Hancock Tower, Boston MA

The John Hancock Building will be sold at auction today after the owner, Broadway Partners, defaulted on its mortgage debt.

 

Broadway just bought the building in ’06 for $1.3b but can’t secure a refi so the lender, acting very quickly, is dumping the behemoth on the Boston commercial real estate market.

 

They might get $700mm for it, they might get less. In-any-case this is a sign of incredible stress in the commercial real estate industry.

 

You can read more at boston.com.  

UPDATE: The tower sold for a ~$660mm to a partnership between Normandy Real Estate & 5 Mile Capital. Details in The Wall Street Journal.

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You can apply for a commercial mortgage loan online at MasterPlan Capital.

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