Boston's Hancock Tower Sold at Auction for Steep Discount

The Wall Street Journal reports:

Boston's John Hancock Tower, New England's tallest building, was sold on Tuesday in a foreclosure auction held by a group of lenders for $660.6 million, half the price paid by real-estate private-equity firm Broadway Partners three years ago.

The auction, which some participants described as a "non-event," reflects a steep decline in commercial property values as the economic distress sweeps through office buildings, shopping malls and hotels. The winning bidder is a partnership between Normandy Real Estate Partners and Five Mile Capital Partners, which holds the senior portion of a $700 million so-called mezzanine debt, or the part that fills the gap between the first mortgage and a borrower's equity.

Half off in three years!