Value of offices sold in S.F. plunges 24% as lenders tighten amid subprime woes
Tuesday, October 2nd, 2007The value of San Francisco office buildings sold in the third quarter fell 24 percent as potential buyers found it more difficult and costly to borrow money.
Sixteen office sales totaling $447.5 million were completed, compared with 13 transactions with a combined value of $591.3 million a year earlier, according to data compiled by Grubb & Ellis.
“Financing is slow moving, less liquid and more expensive,” said Marc Sznajderman, managing director of Carlton Advisory Services, a real estate investment banking firm. “New deals that were in the market were either pulled or put on hold, and prices were negotiated down.”
investment property