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Re: A Second Mortgage Disaster On The Horizon?
<div class="ubbcode-block"><div class="ubbcode-header">Quote:</div><div class="ubbcode-body">Hundreds of NY properties in danger of failure
By Elisabeth Butler Cordova
Published: December 17, 2008 - 3:38 pm
As the city’s commercial real estate market continues to cool, many opportunistic investors are biding their time, watching to see whether prices will come down. But bargain-hunters may not have to wait much longer, according to a report released Wednesday by trend-tracking Real Capital Analytics.
In the New York metro area, there are already 32 commercial properties in distress. Those buildings, valued at $3.4 billion, belong to owners who have either gone bankrupt, defaulted on their mortgages or put their property in foreclosure. Another 236 properties, valued at $8.6 billion, are potentially troubled, according to the study. That means the buildings are only solvent by a slim margin and that a major tenant filing for bankruptcy could push the property over the edge.
“If there’s a hiccup in the chain of revenue, or any other event, that just makes them more vulnerable,” said Peter Slatin, editorial director of Real Capital’s reports.
Among the endangered properties, Real Capital listed 450 W. 33rd St., the building that houses offices for the New York Daily News. Broadway Partners owns the property, having bought it last year for $664 million with the intention of reselling it for a profit. Not only has the firm not been able to move the property, it must pay off a $1.2 billion debt on its portfolio this spring.
With so many buildings teetering on foreclosure or bankruptcy, industry insiders expect investors to cool their heels a while longer.
“Why would you pay retail when you could buy it wholesale if you just wait,” said Woody Heller, an executive managing director at Studley.
“Right now, people are holding out as best they can,” said Peter Hauspurg, chief executive of Eastern Consolidated Properties. “There’s a lot of talk about people buying distressed properties right now, but there are very few deals actually happening.”
In Real Capital’s report, Troubled Assets Radar, New York topped the list of cities with troubled commercial real estate, at least by value. The Los Angeles metro area had more distressed properties, 57 in all, but they were valued at significantly less, $2.9 billion. There are 280 properties in or near Los Angeles that Real Capital considers to be potentially troubled.
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http://www.crainsnewyork.com/apps/pbcs.d...p;rssfeed=rss01
<div class="ubbcode-block"><div class="ubbcode-header">Quote:</div><div class="ubbcode-body">Hundreds of NY properties in danger of failure
By Elisabeth Butler Cordova
Published: December 17, 2008 - 3:38 pm
As the city’s commercial real estate market continues to cool, many opportunistic investors are biding their time, watching to see whether prices will come down. But bargain-hunters may not have to wait much longer, according to a report released Wednesday by trend-tracking Real Capital Analytics.
In the New York metro area, there are already 32 commercial properties in distress. Those buildings, valued at $3.4 billion, belong to owners who have either gone bankrupt, defaulted on their mortgages or put their property in foreclosure. Another 236 properties, valued at $8.6 billion, are potentially troubled, according to the study. That means the buildings are only solvent by a slim margin and that a major tenant filing for bankruptcy could push the property over the edge.
“If there’s a hiccup in the chain of revenue, or any other event, that just makes them more vulnerable,” said Peter Slatin, editorial director of Real Capital’s reports.
Among the endangered properties, Real Capital listed 450 W. 33rd St., the building that houses offices for the New York Daily News. Broadway Partners owns the property, having bought it last year for $664 million with the intention of reselling it for a profit. Not only has the firm not been able to move the property, it must pay off a $1.2 billion debt on its portfolio this spring.
With so many buildings teetering on foreclosure or bankruptcy, industry insiders expect investors to cool their heels a while longer.
“Why would you pay retail when you could buy it wholesale if you just wait,” said Woody Heller, an executive managing director at Studley.
“Right now, people are holding out as best they can,” said Peter Hauspurg, chief executive of Eastern Consolidated Properties. “There’s a lot of talk about people buying distressed properties right now, but there are very few deals actually happening.”
In Real Capital’s report, Troubled Assets Radar, New York topped the list of cities with troubled commercial real estate, at least by value. The Los Angeles metro area had more distressed properties, 57 in all, but they were valued at significantly less, $2.9 billion. There are 280 properties in or near Los Angeles that Real Capital considers to be potentially troubled.
</div></div>
http://www.crainsnewyork.com/apps/pbcs.d...p;rssfeed=rss01
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