For many months, analysts have been predicting a second shoe drop due to the struggling commercial real estate market. Today the Seattle Times reported that the owners of the 76-story Columbia Center missed this month's mortgage payment. Did anyone hear a clunk?

Beacon Capital Partners bought the building three years ago for $621 million. It's currently assessed at $380 million (which happens to equal to the value of the loan taken out to purchase it).  That's a drop in value of 39 percent (which happens to be equal to the vacancy rate in building).

Welcome to the Real Estate Twilight Zone.
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