The Real Deal New York

From the archives: House of cards comes tumbling down

From hesitancy to headaches, how subprime fallout will affect city's real estate pros

March 22, 2015 01:00PM
By Alison Gregor

The Grinnell at 800 Riverside Drive

The Grinnell at 800 Riverside Drive

Since delinquencies among subprime loans that had been packaged and resold on secondary markets reached fever pitch this summer, there have been tremors in not only the New York City residential real estate market, but in the thriving commercial one as well.

The era of cheap credit has unraveled quickly, as a crackdown on risky loans has tightened standards among all lenders. The fallout has affected all parts of the New York City real estate food chain.

It’s hit residential sales brokers, some of whom have seen their deals jeopardized as lending terms change and interest rates rise, as well as developers of office buildings, who are finding it more difficult to obtain financing from lenders.

Others, like commercial brokers, real estate attorneys and new development marketers, have also felt an impact. The Real Deal set out to capture the reaction to the subprime mortgage debacle and credit crunch from individuals on the front lines in several sectors of the New York City real estate industry. Read the full article from the September 2007 issue after the jump.

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