Would-be buyers of distressed office properties can see the troubled buildings just waiting to be marketed. They can see them on the balance sheets of banks and in the reports of rising defaults on CMBS loans. They can see them in the form of deals like the $31-million sale last year of an Orange County, CA asset called 3 MacArthur that sold for $83 million only two years before, and in the sale this year of another Orange County property, Griffin Towers, that went for $90 million compared with the $200 million that refinanced it two years ago.

Those opportunities are just the kind of bargains that investors expected to see when the capital markets crashed and it became evident that scores if not hundreds of office buildings across the country would be in distress. Yet such deals have proven to be the exception rather than the rule, according to Kevin Shannon, a vice chairman with CB Richard Ellis in Los Angeles and a broker on both the 3 MacArthur and Griffin Towers sales.

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?


© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.


Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2024 ALM Global, LLC. All Rights Reserved.