Neubarth
At the Ballpark July 30th
To the extent that Morgan Stanley is leading by example, the securities colossus is sending an unlikely message to underwater homeowners: Walk away.
The Wall Street firm is itself walking away from five San Francisco office buildings it purchased as part of a landmark $2.43 billion deal near the height of the real estate boom. But don't call it a foreclosure or a default -- not when this kind of money is involved. A spokeswoman interviewed by Bloomberg News called it "a negotiated transfer to our lenders."
The buildings were bought in 2007 by a fund managed by the firm and supplied with cash from Morgan Stanley and investors. They may be worth half the price Morgan Stanley paid just two years ago, according to Bloomberg.
If Morgan Stanley Walks Away, Why Shouldn't You? Firm Walks Away From 5 Properties
The Wall Street firm is itself walking away from five San Francisco office buildings it purchased as part of a landmark $2.43 billion deal near the height of the real estate boom. But don't call it a foreclosure or a default -- not when this kind of money is involved. A spokeswoman interviewed by Bloomberg News called it "a negotiated transfer to our lenders."
The buildings were bought in 2007 by a fund managed by the firm and supplied with cash from Morgan Stanley and investors. They may be worth half the price Morgan Stanley paid just two years ago, according to Bloomberg.
If Morgan Stanley Walks Away, Why Shouldn't You? Firm Walks Away From 5 Properties
