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The Bad News About the Commercial Real Estate Mortgage Market
The $4.5 trillion commercial real estate mortgage market is owned by banks, life insurance companies and 14% of a sector called commercial mortgage backed securities. Blackstone bought that building in 2014 from Vernado that equity REIT for $605 million at the top of the market. I saw one report that the cash flow for this building doesn't even cover the mortgage payment or they'll walk away.