New York Tenants Could Benefit From Foreclosure
The New York Times reports: These might seem like the worst of times for large-scale housing complexes like Riverton Houses, Stuyvesant Town and Savoy Park. Their owners, all of whom bought the buildings at the top of the market, are in rough shape, stumbling under the weight of oversize debts and teetering at the edge of foreclosure.
But in the midst of an unforgiving market in which rents are falling and lenders are showing no mercy, real estate executives and even some housing advocates say that the tenants at these large complexes may come out of this dire situation in good shape.
“I think the tenants are going to be all right in an overwhelming majority of cases,” said Dan Fasulo, a managing director of Real Capital Analytics, a real estate research firm. “These buildings will be attractive to investors at the right price and the right rate of return. Everything will turn on how much of a bath the lender is willing to take.”
Riverton is in the most advanced stage of distress. Credit ratings agencies like Realpoint and Trepp say that the owners of Savoy Park, another Harlem complex, and dozens of heavily leveraged buildings on the Lower East Side, in the South Bronx and in East New York are in danger of defaulting.
View the full article on The New York Times: New York Tenants Could Benefit From Foreclosure
Posted by: Nina Turner