Mortgage Bankers Association sells their headquarters at a loss

CoStar Group stated it agreed to buy the Mortgage Bankers Association (MBA) Headquarters Building for $41.3 million. MBA purchased the building in 2007 for $79 million.

1/18/2007 Press Release by MBA:
“As MBA has continued to grow in recent years, we have come to the inescapable conclusion that owning our own building was the smartest long term investment for the Association,” said Kempner. “The commercial real estate environment in Washington, DC continues to be favorable for owning, and we are very excited at the prospect of designing and owning our own space. And quite frankly, it is only right that the national association for the commercial and residential real estate finance industry own its property.”


Grandpa’s take:
37 months of ownership and a loss of $37.7 million (excluding closing related expenses) or $1 million per month for their “inescapable conclusion”. One can only imagine the pain if this was not the “smartest long term investment for the Association”.

Maybe they should have been more patient, as Geithner states the economy is growing at the most rapid rate in 6 years.