I happened to look up the price CWH paid for an office building near where I live along with the present value according to tax assessment valuation.
They paid $20M for it in 1995 and is now worth $14M. It's located in a high tech area, good location. Tax valuations used to be low in comparison to real market values. They are now very close to what properties are selling, for several good reasons.
CWH generates about 15% in annual revenues per book value of net RE assets invested, a relatively consistent, albeit crude metric over the years. It is probably as valuable as ruminating on the appraised values of each of its properties. You guys are working too hard.
<<Can you comment on whether most office properties in your area currently have depressed prices? >>
I'd be glad to but I'm not into Commercial at all. I doubt that it it's anything like residential, which has taken a 30-40% cut so far. The economy in the Washington DC area has been picking up in the last year, and that's what surprised me. I had a very hard time finding that data point because commercial property is hard to research in land records.
I posted with the hope that folks may give an insight into other areas and determine how well (or badly) CWH has fared on investments. Forget depreciation and all the other gimmicks. This may be the reason CWH pps is below book value.
As per the 2010 annual report CWH owns only one building that was bought in 1995,that building is in Boston and they paid 30m. The annual could have the wrong date,or I could have missed it. I think that if someone wants to post an example they could provide some FACTS like the address of the building and size
do THE PORTNEYS HAVE ANY Relatives in real estate in your area ? my question is - why buy a property for 20 M that is worth 14 M ? did I miss "101 Investing? - is Maddoff alive and now in REIT's ? where is the SEC ? do they do "home work" ?