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New York - Real Estate Bubble About To Crash More |
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According to newly released data from Real Capital Analytics, some $108 billion worth of commercial real estate is either in default, foreclosure or bankruptcy as of July 1, a jump of $60.5 billion from the start of the year as office and residential rents sag, condo sales languish and retailers go bankrupt.
Meanwhile, 120 properties in Manhattan worth nearly $8 billion are considered "troubled," Real Capital's data show. They include 84 apartment buildings, 24 office buildings, eight development sites, two hotels, two retail properties and one industrial building.
"It's not surprising as we've had $100 billion in sales just in the last three years in New York -- and many were highly leveraged," observed Jon Caplan, an investment broker with Cushman & Wakefield.
The outer boroughs and Long Island combined have 78 troubled assets worth $1.7 billion, of which the four New York City boroughs account for $376.8 million.
So far, just $4.1 billion in problem loans have been resolved nationally, with Manhattan accounting for nearly $2 billion of that figure. Most resolutions have been in the form of loan modifications or short-term extensions, which Real Capital's analysts say simply means many properties' problems are being pushed off into the future.
"Excess leverage is endemic to every type of investor, all of which are facing difficulties refinancing mortgages as they come due," the report said.
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Total7
Read Comments (7) — Post Yours »
1
Jul 10, 2009 at 09:03 AM Anonymous Says:
Good! maybe some of us who aren't rich can now afford to buy a home.
2
Jul 10, 2009 at 09:13 AM moshe yankel Says:
Does this mean when the bublle bursts that a piece flies into my pocket also?
3
Jul 10, 2009 at 10:37 AM DISGUSTED Says:
“ Does this mean when the bublle bursts that a piece flies into my pocket also? ”
trying to live off peoples troubles? where is your rachmonos? its only about $$ with you? Go to eichlers and get some derech eretz tapes --you need it
4
Jul 10, 2009 at 03:44 PM Anonymous Says:
“ trying to live off peoples troubles? where is your rachmonos? its only about $$ with you? Go to eichlers and get some derech eretz tapes --you need it
”
The question is not where is his rachmonos, the question is where is the rachmonos of the great capitalist investors who blew hot air into the bubble by flipping and flipping and flipping more properties, creating prices that were driven way higher then natural demand, and created a situation where only the mega rich could actually genuinely afford housing and commercial properties, everyone else got mortgages they could not afford having no other choice if they wanted a chance to succeed.
5
Jul 10, 2009 at 03:44 PM Anonymous Says:
“ trying to live off peoples troubles? where is your rachmonos? its only about $$ with you? Go to eichlers and get some derech eretz tapes --you need it
”
The question is not where is his rachmonos, the question is where is the rachmonos of the great capitalist investors who blew hot air into the bubble by flipping and flipping and flipping more properties, creating prices that were driven way higher then natural demand, and created a situation where only the mega rich could actually genuinely afford housing and commercial properties, everyone else got mortgages they could not afford having no other choice if they wanted a chance to succeed.
6
Jul 10, 2009 at 04:55 PM FVNMS Says:
“ Good! maybe some of us who aren't rich can now afford to buy a home. ”
Yes but now I can't afford to give you a job.
7
Jul 10, 2009 at 05:02 PM FVNMS Says:
“ The question is not where is his rachmonos, the question is where is the rachmonos of the great capitalist investors who blew hot air into the bubble by flipping and flipping and flipping more properties, creating prices that were driven way higher then natural demand, and created a situation where only the mega rich could actually genuinely afford housing and commercial properties, everyone else got mortgages they could not afford having no other choice if they wanted a chance to succeed. ”
& also #3
What did you do to be entitled to the $ that the rich people produced?
Who forced people who couldn't afford to live in any given area to live there, hence be faced with high real estate rates?
I got a big problem with you anti-capitalism lefties myself: you elect politicians who raise my taxes so now i can't afford to employ you and you can't afford to buy the cheap houses scattered about like mannah from heaven.