When a loan resolves, the last purchase price is the least useful number in the file.
901 Fifth Avenue, a 41-story, 540,589 sf Seattle tower, sold for $48.3M ($89.36/sf). Vanbarton paid $305M for it in 2019. The sale price is 16% of that, an 84% decline (derived).
The Palmer House retail, office and parking parcel in Chicago sold for $5.15M against a $57.68M CMBS loan, recovering about 9 cents on the dollar (derived). Special servicer LNR had bid $29.5M for the retail portion at a 2023 sheriff's sale; the reported $5.1M resale is about 17% of that bid (derived).
Implications
Lenders should expect resolution values set by basis and parcel structure, not by appraisal or the last trade. Buyers should price the cost to re-tenant. A subdivided parcel is a legal risk before it is a leasing risk.
Flags: Seattle details come from a paywalled excerpt; loan balance and occupancy not disclosed. Palmer price is $5.15M in one source and $5.1M in another; the sale date predates the loss report. Single-asset resolutions are not market comps. Percentages are CRE360 derivations.
Related coverage
Key Takeaways
- The Seattle tower sold for about 16% of its 2019 price
- The Palmer loan recovered about 9 cents on the dollar
- Resolution values follow basis and parcel structure, not appraisals
CRE News, Seattle Office Property Sells at Major Discount, Oct. 6, 2026 · CRE News, Sale of Palmer House Retail, Office Space Spells Big Loss; CMBS Deal Gets Downgrade, Oct. 5, 2026 · Bisnow, Thor Equities Reacquires Retail Portion of Palmer House After Losing It to Foreclosure in 2023, Sept. 8, 2026 · REBusiness, Vanbarton Group Purchases Seattle's 901 Fifth Avenue Office Tower for $305M, July 2019
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