If anything has proven itself during 2024 in commercial real estate, it's that top-rated securities backed by solid real estate assets can blow apart and leave investors whimpering.
What a shame this lesson has to be retaught since the last tutorial during the Great Recession.
The material review started in May when it became clear that investors in the AAA tranche of the $308 million debt backed by 1740 Broadway in midtown Manhattan only got 74% of their investment back after the loan sold at a steep discount. Creditors in the five lower groups were completely wiped out.
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