A new report on commercial real estate in Edmonton has found that Edmonton’s CN Tower sold for just $10 last year, as long as the new owners took on the debt. Of course, this debt is nothing to shake a stick at, coming in at a cool $64M. Here’s a quick summary.
The former owner was a numbered company that had gone into receivership, which basically meant someone else was in control of the operations. This usually occurs when a company can no longer uphold its financial obligations, and is required to sell off its assets.
The 26-storey CN Tower in downtown #Edmonton has sold for $10 cash and assumption of a $64.1 million debt. Read more: #RealEstate #CRECanada #Alberta https://t.co/VyLi4uwdhf pic.twitter.com/sMhwkvrmgv
— RENX (@RENXca) January 22, 2021
Well, in this case, those assets are buildings. The former owners only paid some $55M for the property back in 2011. Even with inflation factored in, the building has more or less retained its value over the years. In fact, the sale price was one of the higher ones last year, as the city faced widespread vacancies.
Here’s hoping the new owners can drum up some more business! We say add an espresso bar and a gym for when people are allowed to go back to work.
For more information on the sale, just click here. Enjoy the day, Edmonton!