RSS Feed
New York City - Apartment Buildings Might Be Next in Mortgage Crisis |
|
| |
Text Size
|
At least 580 buildings, containing 40,000 units, have one or more factors that could lead to mortgage default, Crain's New York Business reported Sunday on its Web site.
Private equity firms bought at least 90,000 affordable housing units in the past four years, many at inflated prices in badly leveraged deals, according to the Partnership to Preserve Affordable Housing.
The Riverton apartments in Harlem and Stuyvesant Town on the East Side are both at risk, according to the Crain's Web site. Riverton's owners indicated last month that they were on the verge of defaulting.
And Savoy Park, a seven-building complex in Harlem, has been placed on a watch list. Apollo Real Estate Advisors and its partners bought the complex in 2006 for $175 million.
Apollo refinanced a year later, increasing its debt to $367.5 million, the credit rating agency Realpoint reported. The agency called the risk of default on the loan "moderate to high."
Housing advocates told Crain's that buyers had unrealistic goals about rent increases. The same lenders caught up in the mortgage free-for-all in single-family homes lent them money anyway.
More of today's headlines
“New York City - Standing on the sidewalk outside the Park Avenue Synagogue after attending a service on Rosh Hashana, the Jewish New Year, Joel Beeler said, “I feel...”
New York City - Financial Crisis Keeps Reform Jews Busy With Blackberry's During 'Rosh Hashana' Services
New York City - Bloomberg Officially Announces “I Am A Candidate For A 3rd Term”
Total10
Read Comments (10) — Post Yours »
1
Oct 02, 2008 at 01:17 PM winter Says:
don't forget that the cost of oil for heating has atleast doubled!
i think that we'll be seeing alot of foreclosures in the commercial real estate sector throughout this winter!
2
Oct 02, 2008 at 01:16 PM SLEEPING? Says:
HUH? This is news ? Are you for real? This abnormal leverging has been going on ever since sub-prime mortgages became availabe and now they're waking up?
Till now it was the 1-2-3 family houses being taken by the banks, NOW THE FUN STARTS! 40-200 unit buildings will be theirs too!
A new bailout in the pipeline and for this we'll need the ARABS money! The US has NONE anymore.
3
Oct 02, 2008 at 02:46 PM deepthinker Says:
Never in Boro-Park.
4
Oct 02, 2008 at 02:49 PM Flipper Says:
I think we should all go back to kolel
no more flippers, brokers, and Mortgages
5
Oct 02, 2008 at 03:06 PM Anonymous Says:
“ I think we should all go back to kolel
no more flippers, brokers, and Mortgages ”
Yes that's brilliant, because kolel learners contribute so much to the economy. Maybe you can run for president?
6
Oct 02, 2008 at 03:39 PM Straight Talker Says:
This has to make you think a little bit, if you do not care to seek the facts then keep your blinders on!
George Bush has been in office for 7 1/2 years. The first six the economy was fine.
A little over one year ago:
1. Consumer confidence stood at a 2 1/2 year high
2. Regular gasoline sold for $2.19 a gallon
3. the unemployment rate was 4.5%
4. the DOW JONES hit a record high--14,000 +
5. American's were buying new cars, taking cruises,
vacations o'seas, living large!
But American's wanted 'CHANGE'! So, in 2006 they voted in a Democratic Congress, and yep, we got 'CHANGE' all right. In the PAST YEAR:
1. Consumer confidence has plummeted
2. Gasoline is over $4 a gallon & climbing
3 Unemployment is up to 5% (a 10% increase)
4. Americans have seen their home equity drop by
$12 TRILLION DOLLARS & prices still dropping
5. 1% of American homes are in foreclosure.
6. As I write, THE DOW is probing another low 11,100;
$2.5 TRILLION DOLLARS HAS EVAPORATED FROM THEIR STOCKS, BONDS & MUTUAL FUNDS INV ESTMENT PORTFOLIOS!
YEP , IN 2006 AMERICA VOTED FOR CHANGE AND WE SURE AS HELL GOT IT!!!
NOW OBAMA, the DEM'S CANDIDATE FOR
PRESIDENT, AND THE POLLS SAY HE'S GONNA BE 'THE MAN', CLAIMS HE'S GONNA REALLY GIVE US CHANGE!!
JUST HOW MUCH MORE 'CHANGE' DO YA THINK YOU CAN STAND???....
7
Oct 02, 2008 at 04:18 PM mikey Says:
Straight Talker - amen and ditto.
These kookoo Democrats have brought this upon us with Clinton/Shumer/Polosi/Reid/Frank/Dodd creating a false mortgage economy. And don't forget Clinton gave us the false dot-com economy and recession.
Free money has run out- and now must be paid by responsible taxpayers.
Investors who purchased building at crazy numbers without a portfolio of other buildings to write-off off will be in trouble with increased energy costs and RE taxes and rent regulations below inflation and thousands of new units flooding the market in a finance recession - plus the exit of finance jobs to London and Paris - oy vey - Democrats want to increase income tax too!!!
8
Oct 02, 2008 at 06:07 PM Oy Gevald Says:
“ Never in Boro-Park. ”
Really? Come take a drive around the Bronx and see all the beautiful Batei Medrashim turned Tiflas that happened when the tens of thousands of Yidden left the Bronx for a "better" neighborhood. Mark my words, keep building apartment buildings (with small units) and Boro Park will be history too!
9
Oct 02, 2008 at 06:27 PM Anonymous Says:
I bet those houses have section 8 tenants. the landlord get peanuts and are
stuck with them till they decide to move with very little increases, but are forced
to maintain the houses and supply all the conforts. they will be eaten up this winter
by the fuel costs.
10
Oct 02, 2008 at 09:17 PM Anonymous Says:
Not too long ago, people were complaining bitterly here about the blocking of the proposed sale of Starret City to a frummeh Yid. In hindsight, I think it was a tremendous brocho, he was saved from a big mess. Haydu LaHashem ki tayv !