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Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: Spekulatius who wrote (33999)	4/1/2009 1:59:13 AM
From: peter michaelson	Read Replies (1) \| Respond to of 78778

Spekulatius: Can you point me to the details you used in determining the 9.5% cap rate, please? Or perhaps you saw that number reported. There is some gray area in calculating a cap rate. Perhaps substantial known vacancies are on the horizon. I wonder how real 9.5% is. In any case, it doesn't shock me.

To: Spekulatius who wrote (33999)	4/1/2009 2:15:44 AM
From: Paul Senior	Read Replies (1) \| Respond to of 78778

re "REITS. 50% off sale for the Boston Hancock Tower." What seems astonishing and a feat of brilliance to me is that the partners seemingly had only to put up $20M dollars. For this they were able to acquire THE primo building 85% leased. (Apparently in total they spent more than that because they bought up the mezzanine debt which apparently allowed them to control the foreclosure bidding.) If this property appreciates even 10 percent over the next three years (from the $600M purchase price), these guys will get maybe a triple just in capital appreciation alone on their very small (relatively) cash buy.