Friday, December 18, 2009

Commercial Real Estate Jingle Mail

Author: The Golden Truth Blog
'Tis that time of the season. As per the linked article from LINK, Morgan Stanley has sent an early Christmas present to lenders who financed five buildings owned by Morgan Stanley in San Francisco. Morgan Stanley has opted to hand the keys and building titles over to these lucky banks and investors (no doubt there's public and private pension money in the debt structure).
We've seen some bullish declarations about the housing and commercial real estate market lately. The most recent coming from Bill Ackman, who runs Pershing Square Capital, a hedge fund with a successful track record. Recently Ackman gave a presentation to investors which made some very bullish projections for commercial real estate. In that presentation he has some very questionable assumptions about the ongoing "strength" of the current economy and for economic growth in 2010. He characterizes the current economy as being "recovered from recession" and makes some incredulous assumptions for growth in the retail industry for next year.
Read more here

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