Relics of the Last Property Crash Start to Wobble Again
- Work from home, interest rates have hit office properties
- Tighter lending standards are affecting refinancing options
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CityPoint, a 36-story office building in London’s financial district, became one of the symbols of the financial crisis when a Beacon Capital Partners Inc. fund missed a payment on loans secured by the property just over a decade ago.
As the turmoil receded, Brookfield Asset Management Inc. eventually took over the tower. Now, the rise of work from home and surging interest rates mean Bank of America analysts are warning that a default on loans linked to the property is likely.