Blackstone forfeits $20M deposit and pulls out of $400M single-asset purchase

https://news.theregistrysf.com/blackstone-backs-a…

"New York City-based Blackstone has made the decision to walk away from its planned $405 million acquisition of the Uptown Station office project in Oakland. As a result, the global investor will have to forgo the $20 million non-refundable deposit it made on the acquisition earlier this year, according to multiple sources that are aware of the situation."

The article goes to further say that BX pulled out to volatility and financing uncertainty. Wild. They must be anticipating a repricing or market-to-market loss far exceeding their breakup costs.

Has anyone heard anything from blackstone on their post-covid outlook?

 
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This Biz Journal article below suggests BX was prepared to pay way over market for this, so they may have just come to their senses.

> The now-defunct deal had worked out to around $1,020 per square foot, according to the Registry, which would have set a new record in Oakland. Uptown Station fetching more than $800 per square foot would have been well above what other investors had been paying for Oakland office buildings before the coronavirus shutdown occurred: 180 Grand came in at $646 per square foot in July and 1901 Harrison St. sold in March for $147.2 million, or $510 per square foot, according to PropertyShark.

https://www.bizjournals.com/sanfrancisco/news/2020/04/02/oaklands-uptow…

“Doesn't really mean shit plebby boi. LMK when you're pulling thiccboi cheques.“ — @m_1
 

180 Grand and 1901 Harrison are both 80's multi-tenant properties that generally lease to a smaller tenant base.

Uptown Station has been fully redone and has something like $25MM of recent improvements under the hood. It is also leased fully to square.

Not saying 1K PSF is logical but you definitely get a healthy cap rate and thus PSF premium for single tenant and level of improvements.

 

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