The Real Deal New York

From the June issue: Potential buyers are musing about why — in light of the new market
landscape — some developers of new condo developments haven’t dropped
their prices. “Seems like [Williamsburg condo development] 80 Metropolitan is
another building that’s stubbornly clinging to the pricing they set
before things dropped,” wrote one poster on the real estate Web site
StreetEasy.
What incredulous buyers often don’t realize is that
across-the-board price cuts have not been easy for most developers to
make, because price reductions must be cleared with lenders. Yet with price cuts the must-have amenity of the moment, discounts
have become increasingly important to the survival of many projects. As
a result, sponsors and lenders have recently started coming together to
make those cuts happen. Indeed, some formerly obstinate lenders are now
loosening their restrictions so developers can reduce prices below
previously agreed-upon minimums, known as “release prices.”