Owners: $5.4B NY housing complexes go to creditors

The financially troubled owners of two massive apartment complexes that sold for a record $5.4 billion a few years ago said Monday they're turning them over to their creditors. Read more
Mark Winshel

Moraga, CA

#1 Jan 25, 2010
If there was nothing major in that complex other than the 11,000 apartments, than 11,000 apartments for 5.4 billion dollars would have meant a purchase price of approx five hundred thousand dollars per apartment. In such a case, it would be mindboggling that anyone would think they would be able to collect enough in rent for middle class housing so as to justify paying 500K per unit, or in fact anything even remotely close to 500K per unit.

Or as a friend of mine, and who over the years had bought and owned a few small apartment buildings, used to repeatedly say, they call it income property, so therefore if there is no income (by that he meant positive cash flow) refuse to buy it, in other words refuse to purchase those properties which have absurdly high prices.

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