New Distressed Manhattan Property Tally Tops $12 Billion
Crain's New York Business reports: The November spike is seen to be driven by $3 billion in mortgage-backed loans for Stuyvesant Town/Peter Cooper Village that went sour.
The value of new properties in Manhattan falling into distress skyrocketed to over $12 billion last month—the highest levels since July when it reached over $15 billion—according to the latest regional report conducted by Real Capital Analytics.
In the borough, there are 186 distressed properties, ranging from offices to hotels, which are valued at $12.3 billion, according to the latest Troubled Asset Radar report. The spike in Manhattan distressed assets were mostly attributed to the $3 billion CMBS loans for Stuyvesant Town/Peter Cooper Village, which finally transferred to a special servicer in November. The Manhattan market ranked 29th among U.S. markets in distress as a percentage of total property investment volume.
"We have seen more and more owners of office buildings that have purchased assets at the top of the market throw in the towel," said Dan Fasulo, managing director at Real Capital Analytics. "We haven't seen the apex of distressed properties just yet; more will come in 2010."
Some 43 offices, valued at $4.5 billion, and 100 apartment buildings worth $5.7 billion make up the bulk of the distressed properties in Manhattan, the report noted.
View the full article on Crain's New York Business: New Distressed Manhattan Property Tally Tops $12 Billion
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Posted by: Matthew Stone