Jul 11, 2006 3:13 PM
"incredibly low yields aren’t deterring many offshore investors from buying Manhattan office towers. Case in point: When 280 Park Avenue was sold last month, brokers estimated that Istithmar accepted a puny 3.75% yield [capitalization rate] on the property."
Reminds me of the Japanese who bought the Rockefellar center in the 80's and got their asses handed to them.
The Mitsubishi Estate Company of Japan plans to walk away from its almost $2 billion investment in Rockefeller Center, the Hope diamond of world real estate.
Mitsubishi proposed yesterday afternoon that it pass ownership of the Manhattan property to Rockefeller Center Properties Inc., the publicly traded real estate investment trust that holds the $1.3 billion mortgage on the center, according to advisers involved in the negotiations to bring Rockefeller Center out of bankruptcy protection.