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Your Chance To Buy 26,135 Sq. Feet Of "Lipstick" History, And In Other News CRE Insiders "Not At All "Dumping Shares

Courtesy of Tyler Durden

Manhattan Class A office transactions are finally coming to the fore. In May 2007, or the absolute peak of the CRE bubble, LA-based Metropolitan Real Estate Investors bought 885 Third Avenue (aka the Lipstick Building) for $607 million from Tishman Speyer. Alongside this ridiculous investment, SL Green and Gramcery Capital Corp (GKK) bought the underlying land (with Goldman generously providing a $268 million first mortgage IO loan at 6.26%). Recently Gramercy has realized it has had enough of waiting for Bernanke to reflate Credit Bubble 2.0 and wants out: it is selling 45% of its the fee interest in the 26,135 sq. land parcel. So any willing lenders to buy into the equity of this stratospherically priced monstrosity (and be primed by none other than Viceroy of the World, Goldman Sachs) should immediately contact the good folks at GKK.

And now that Bernie Madoff has vacated the 17th floor, which will likely be empty in perpetuity, you may lose some potential revenue streams and thus be a little short of that goal seeked 9.9% IRR, but the intangible benefits of knowing the world’s biggest certified Ponzi (until the Fed is audited of course) once walked 100 feet above the land you own.

   

In other news, the Commercial Real Estate market is doing very well… Oh, my mistake, was just reading the latest Cohen & Steers market update. For a more realistic observation, one may want to consider that Boston Properties Mort Zuckerman just filed to sell 1 million shares of BXP for a value of $51 million. From Bloomberg:

Zuckerman is exercising stock options and making the sale to diversify his assets, said Arista Joyner, a Boston Properties spokeswoman. He remains the largest individual shareholder in the Boston-based company he founded. Chief Executive Officer Edward Linde filed to sell 300,000 shares, filings show. Boston Properties hit a seven-month high this week and the stock is up 68 percent since March 5, when it traded at $31.49. The company, owner of New York’s General Motors Building and Citigroup Center, raised $842 million in a secondary stock offering last month, joining REITs in selling equity and debt to pay existing loans.

But wait, lest you think there might be an ulterior motive here:

Zuckerman is “not calling another high” in the stock, said Arista Joyner, a BXP spokesman. “That is not his reason at all” for selling.

In other news, Joyner will likely soon anounce that BXP has commenced the construction of a bridge between New Mexico and Arizona and is actively soliciting investor interest.

So readers, please, PLEASE, keep buying those REITs and other gangrenous, toxic, nuclear fallout – how else will the CEOs of the companies who realize that the bottom of the market is about to fall off any minute, be able to sell their shares (Merrill upgrades obviously excluded)?

hat tip Ed

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