There is still some value there although distressed unless its a tear down in my opinion for the foundation and exterior walls if salvageable .

A government can not swoop in, say hours or days after a tornado tears through an area, say "wow, look at this mess, well it sure ain't worth a dang" and tell people it's "taking" there stuff and giving it just the price of the then current mess. 

Hello Mike, It is nearly impossible to answer this question without taking a deep dive on the numbers of each but often times in expensive markets like Seattle the cost of construction is so high that it doesn't make sense to tear it down unless you can build something way bigger/nicer.

They are tearing it down to build a logistics facility.

I've lost money tearing out shower tile that was just not quite right.

They don't want the company to be potentially liable if an owner doesn't follow through with the inspections and repairs.After the GFC, we needed the capital investment or they would have had to tear down more houses than the thousands that they already have.

The small lot and setback requirements mean that it would have little to no value as a tear down.  

There will be more wear and tear and multiple headaches with several different renters.

SO many more options and the reduced responsibilites and work loads are under valued until you deal with them.. lol Also when you factor in management fees it can be quite comparable in net proceeds, without the wear and tear on the property and furnishings. 

:wow, that thing is a tear-down...