New York Borrowers Wait for Ailing iStar to Make Next Move
Crain's New York Business reports: Were iStar Financial to file for bankruptcy protection in the next 12 months, the proceedings could become a real headache for several projects currently underway in New York City, according to Crain's. The ailing firm's legacy loans are currently funding the Trump SoHo Condominiums and One Madison Park. Data from Real Capital Analytics, the article states, indicates that iStar also has some loans on properties currently going through foreclosure proceedings. These include properties on Sixth Avenue, 23rd Street, and in Midtown Manhattan among others.
According to Crain’s, iStar “had 11.7% of its loans concentrated in New York, as of the end of December 2009…it also has more than 10% of its loans in the troubled California and Florida real estate markets.” Though the firm is currently trying to restructure some or all of its $8.6 billion in debt, the article cites Bloomberg News as stating iStar may eventually need to seek bankruptcy protection.
For now, those with loans and financing from iStar will just have to wait, as “Any decision would need to be approved by a bankruptcy court…it delays the resolution,” according to Ben Thypin, an analyst at Real Capital.
View the full article on Crain's New York Business: New York Borrowers Wait for Ailing iStar to Make Next Move
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Posted by: Nina Turner