Another building sold for $ 6.6M
by TJ Curioso 14 Replies latest watchtower scandals
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cedars
14% below the asking price, and sold at a time of economic downturn. The words "desperation" and "fire-sale" spring to mind.
Cedars
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Phizzy
I hope you are right Cedars, I had assumed they had taken the decision to move to the Cult Compound upstate and would therefore sell off Brooklyn properties as and when, simply as part of the moving programme.
If cash-flow is such a problem that such asset disposal is forced upon them, then indeed it is a desperate time for them, they only have a finite number of buildings to sell, even globally, once gone and converted to cash they cannot do a "rinse and repeat", and cost cutting only goes so far and often reduces future donations, so where do they go then ?
Down the pan sounds good to me
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DNCall
Here's a scenario: The "unidentified investor group" who plan on leasing out this high-end property is affiliated with the Society. This would explain selling at a loss in a depressed market as it would provide a nice income stream for the Society over time. I'm probably wrong about this, as I'm no financial whizz. Just a thought.
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Momma-Tossed-Me
DNC - That hypothesis probably warrants some investigation.
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slimboyfat
Do Witnesses still own the Stanley Theatre or are they trying to sell it does anyone know?
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sabastious
Here's a scenario: The "unidentified investor group" who plan on leasing out this high-end property is affiliated with the Society. This would explain selling at a loss in a depressed market as it would provide a nice income stream for the Society over time. I'm probably wrong about this, as I'm no financial whizz. Just a thought.
I'd be surprised if they sold anything at a loss. They are going to have to take undermarket values, but they won't take a loss I don't think. They have been in Brooklyn for a long time, they probably have these buildings for the most part paid off and bought them in the vastly deflated economy of the past.
-Sab
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Frozenout
Looks like the Watchtower real estate empire is winding down soon theyll sell all the watch towers and move into cardboard boxes instead.
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Yan Bibiyan
I'd be surprised if they sold anything at a loss.
Mathematically impossible, Sab.
If they didn't earn the money to buy it in a first place, by giving it away they will simply break even.
See, if they gave it away AND gave some money away with it, then it might be a loss. But then, if they gave away money they didn't earn, is this still a loss?
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sabastious
Yan doesn't the profit calculation depend on what the original price tag was as well as how much was paid on it's loan upon the date of sale? All these WT properties were bought a while back and were being paid on the whole time. I just find it hard to believe that they would sell for a loss rather than wait for at least a buyer who would make the deal break even.
-Sab