Get Your Overpriced First Mortgage Piece Right Here, Or Bank Of America Loves Overpaying For Rent
The glory of maintaining your own SPARC-core server headquarters at 65 Montgomery Street (or at least a first lien therein) can be yours for a mere $65 million, compliments of the Houdiniesque commercial real estate folken at Citi Commercial Mortgage Finance.The full mini prospectus can be found here for your enlightenment.
The 18 floor tower is 79% occupied (which means 21% vacant) with recently nationalized Bank of America renting 19.6% of the total space. Yet is it at all odd that BofA is paying rent that is a 40% premium to market prices: we say no way. Ken Lewis should be given a green light to waste taxpayers' money however he sees fit - the CEO of the private company in all but complete taxpayer backing, should be commended that he sees no fiduciary responsibility or the need to be cautious when blowing taxpayers' hard earned money at $56.21/square foot. After all we have all seen Brewster's Millions and have a deep appreciation for how difficult it is to throw away hundreds of millions of other peoples' money. Plus any man that had to experience personal threats from Hank Paulson should be given a taxpayer charge card for life.
As for the first mortgage piece itself which you will soon be a proud owner of, courtesy of that other taxpayer gift known as TALF, you get: 1.19x DSCR, 58.9% LTV. Take out the slightly massive overpayment by BofA and you do not pass go, but go straight to bankruptcy. Oh but yes, if somehow the office tower manages to rent out the 50k square feet of vacant space, all shall be well. Maybe if the government, which has done such an admirable job at reflating the credit bubble, can now focus on recreating the .dot com bubble, you are golden. The millions of bay area 22 year old geniuses, each with a bigger pets.com idea than the other, will be ecstatic to rent out any vacancies at $1 googol/sq foot with their freshly printed IPO cash.