The big guys are bailing out of Minneapolis with big losses!

Here's a sale that we can analyze from today's Strib.
http://www.startribune.com/stories/535/4902009.html

International Center is 65% vacant and its current owners are getting $21
million LESS than they paid for it six years ago.  Who knows how much they
lost trying to operate it during that time.

I looked up the Hennepin County tax records (there are several parcels
involved) for this property which is currently assessed at a taxable value
of $18.7 million.  Oops - Minneapolis taxpayers are ripped off again!
Remember last week that the Oregon pension fund's Fifth Street Towers are
under-assessed by approximately $40 million.

Note:  You might have a little more money to spend if you get some competent
folks down at the Minneapolis assessor's office.

With interest rates at historic lows, it's really difficult to understand
how real estate values can drop so dramatically.  Could it be that
businesses don't want to be in Minneapolis?  There is some evidence to
support this theory:  After all, Minneapolis had to pay Allina over $30
million just to transplant jobs from another city.  Someone at City Hall
should start tracking business arrivals and departures (non-subsidized of
course)so that we know if we're making progress.

Now for those of you who are government dependent and like to blame
President Bush for all of your financial woes......

One of the International Centre parcels, Property ID 27 029 24 11 0087,
which is consistent with all of the others, shows its valuation in the
context of recent history:

As of January 1st

1988    $6,355,000      President Reagan
1999    $5,880,000      President Clinton
2001    $2,983,000      President Clinton
2002    $2,951,000      President Bush
2003    $2,951,000      President Bush
2004    $2,951,000      President Bush


Vicky Heller
North Oaks and Cedar Riverside

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