Eliot Spitzer is investing in DC commercial real estate. What’s wrong with this picture?
Well, as a real estate reporter, I might point out that the commercial real estate market is tanking, and right now might not be the best time to invest in a building. Spitzer, whose family business is buildings, bought the property from a distressed seller (who isn’t these days?) Broadway Partners, according to the Wall Street Journal.
Broadway partners, which bought the building in 2006 for $209 million, has already defaulted on at least some part of the loan. Spitzer reportedly got it for $180 million, which you’d think was a bargain, unless you knew that just five years ago it sold for $124 million.
“We aren’t trying to time the global market,” Spitzer told the WSJ.
But all that business stuff aside, what’s really wrong with this picture is that the first foray back into business for the former NY Attorney general, happens to be barely a block away from the hotel where said Spitzer’s career careered to a nasty end. I mean, come on, there are lots of nice buildings ‘round DC to choose from these days.
You can’t help but wonder what exactly he was thinking there.
And take it one step further: The building’s tenants, when taken in Spitzer perspective, take the commercial to the comical: a public relations firm, Fleishman-Hillard (no help there), the DC outpost of the Nixon Library (liar liar), and the Institute of Scrap Recycling Industries (don’t get me started).
Good luck on your new investment Mr. Spitzer.
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