Newport Beach-based Downey Financial, the struggling parent of O.C.’s largest thrift, is marketing its posh Newport Beach headquarters for sale. Last month regulators ordered the company to raise capital.
Price tag is $115 million, according to market tracker CoStar. Downey, parent of Downey Savings and Loan, declined to comment on price, but confirmed the 337,384-square-foot property is for sale.
The headquarters, two office towers connected by an atrium, is one of the county’s finest office trophies, said Kurt Strasmann, regional managing director in the Newport Beach office of Grubb & Ellis.
But Downey, which wants to lease the property back from a new owner, probably will be offered less money, Strasmann said.
There is too much doubt over the company’s future, he said. It could make it, or it could be taken over by the FDIC, he said.
“If they don’t make it, who are you dealing with?” Strasmann said. “If they file bankruptcy, your lease is null and void.”
If an owner buys the property and later has to find new tenants, it will have to pay for interior improvements such as new paint or moving walls around. All that lowers the property’s value, he said.
He estimates Downey will get bids in the range of $260 to $280 per square foot, or up to $94 million.
And in other meltdown news…
- O.C. business owners squeezed in current crunch
- Real estate funds lose 36.5% in awful year
- Is money all that you’re losing?
- Who’s feeding the anxiety?
- Dow down — 128 points — after roller coaster day.
- Angel investors (and others) reduce their risk
- Asian markets plunge
- Chaos good for Ladera Ranch company, Insider Q&A told
- Government intervention doesn’t fix, it delays fixes
- O.C. real estate stocks plummet
And the Downey saga…
- Bailout bill could save Downey
- Downey Financial taps retired S&L chief as CEO
- Downey downgraded
- Regulators order Downey Financial to raise capital
- Downey halts deposit exodus
- Downey president leaves, company mum on cause
- Downey, WaMu, Indymac plummet in thrift industry rankings
- Downey reports $248 million loss, says reduced pay-option loans
Can I buy it with a stated income option arm from Downey?
Meltdown fastly approaching… I’m gonna make an offer!!
Downey is Done.
Newport real estate is going to implode. All of the financial shills lived in Newport.
I have seen this not only with companies, but with presidents and VP’s along with Loan officers and realtors over the years. When things are good and everyone is making tons of money the FIRST thing they do is SPEND! New homes, new cars, trips, and for companies like Downey, a big fancy office and 1000’s of employees to fill it up with. I have seen this in EVERY up market since 1975. It never fails. As I have told 100’s of companies and people in this industry, ” all the stuff is easy to GET, but it is HARD to KEEP!”
Lou Pacific
Real Estate and Mortgage Company Consultant
Serving OC and the Industry for 30 Years
Maybe their newly appointed CEO can buy it and use his 1million dollar signing bonus along with his 1 million dollar salary and his multi million dollar incentive bonus as a down payment on the building. Meanwhile, the workers continue to lose their jobs and the fat cats at the top continue playing their corporate games. Check out the employment agreement on the CEO - it’s all posted on the internet as an SEC filing. And to think that this agreement was approved by the OTS while honest employees are losing their jobs as part of a “classified asset reduction plan”. What a crock.