Asset Class · Office

Selling an office building loan

Office credits face the sharpest repricing of any CRE asset class as rates and vacancy reset values below loan balances. Lenders resolve them by pricing to the realistic collateral value and recovery path — through a note sale or discounted payoff — rather than carrying a non-earning, classified asset through a long foreclosure.

Context

Why office is hardest

Higher financing costs and structural shifts in office demand have moved many office values below the loans against them. That makes office credits prime candidates for resolution: the longer they sit, the more carry, write-down, and concentration pressure they create.

How a sale prices

A buyer prices office credits to in-place income, realistic re-lease assumptions, and the cost and time to stabilize or dispose — not to face balance. A principal buyer that prices for reality up front holds the bid through closing. See how buyers price a CRE loan and model the alternative with the loan-sale-vs-foreclosure calculator.

Common questions
Can I sell an underwater office loan?

Yes — a buyer prices to collateral and recovery, so an under-secured office credit still has a clear, fair price; selling now caps the carry and write-down risk.

Is there a market for office notes?

Yes — direct principal buyers actively acquire office credits and REO, pricing to today's value. Standing Bid Capital is a direct principal buyer of CRE loans, discounted payoffs, and REO — $250K–$25M, all-cash, no re-trade, confidential. Request a confidential review.

What about a partially occupied or repositioning office?

Send the rent roll and status; a buyer can underwrite lease-up and repositioning into the price.

Request a confidential review →