According to Moody’s, commercial real estate value increased just 19% from May 2004 to April 2012. It was 120.37 in May 2004 and ended up at 143.73 in April 2012.
But in Louisville? Commercial real estate values apparently increased by a million trillion percent.
Like the fancy new VA hospital site.
In May 2004, that vacant piece of property was purchased by Blue Equity for $4.96 million. And it was just sold to the VA for $12.9 million. With the VA saying it paid a fair market price.
We’re guessing that means all commercial real estate sales in Louisville are out performing the entire national market and that all commercial real estate sales are making profits to the tune of $7 million in eight years.
Note: If the property purchased by the VA had only increased in value by 19%, it would have paid around $5.9 million. Getting a change from residential-only zoning to “allow for a six-story hotel, restaurants, retail and apartments” is apparently worth $7 million.