The Real Deal New York

Posts Tagged ‘credit suisse’

  • From left: Fannie Mae, Credit Suisse and Freddie Mac

    From left: Fannie Mae, Credit Suisse and Freddie Mac

    Credit Suisse Group, one of 18 lenders sued by the Federal Housing Finance Agency in 2011 to recover losses on $200 billion in mortgage-backed securities, will shell out $885 million in a settlement over mortgages sold to Fannie Mae and Freddie Mac. [more]

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  • From left: 11 Madison Avenue and Joseph Harbert

    11 Madison Avenue and Joseph Harbert

    More marquee financial companies are choosing to stay in their current office locations rather than upgrading to Manhattan’s much-trumpeted new towers, according to the latest data.

    Information collected by brokerage Newmark Grubb Knight Frank found that five of the six biggest New York leases since the end of 2012 have been renewals. [more]

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  • Fannie Mae has filed suit against nine banks, including Bank of America and JPMorgan Chase, for working to suppress the London interbank offered rate, commonly known as LIBOR. [more]

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  • Credit Suisse considers new Manhattan home

    February 14, 2013 11:30AM

    11 Madison Avenue

    Credit Suisse, which currently lease approximately 3 million square feet in Manhattan, is looking to downsize. According to the Wall Street Journal, the Swiss bank recently contacted a select set of landlords and developers, including  Related, Silverstein Properties and Brookfield Office Properties, seeking interest and proposals to build or lease a new home for the company. However, Credit Suisse’s lease at Madison Square Park’s 11 Madison Avenue runs through 2017 and the building’s ownership is currently working to secure a renewal from the bank. [more]

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  • AG sues Credit Suisse over RMBS practices

    November 20, 2012 05:30PM

    From left: Credit Suisse CEO Brady Dougan, AG Eric Schneiderman

    Credit Suisse is the latest financial institution targeted in the government investigation into alleged wrongdoing in the sale of residential mortgage-backed securities. New York Attorney General Eric Schneiderman filed a lawsuit today claiming the banking giant misled investors about the quality of the home loans packaged into nearly $94 billion of RMBS.

    The action, filed in New York State Supreme Court, claims that Credit Suisse told investors it carefully assessed the loans and loan originators but, in reality, “systematically failed to adequately evaluate these loans, and kept investors in the dark about the adequacy of their review procedures.” [more]

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  • New York Attorney General Eric Schneiderman

    U.S. federal and state authorities have launched a probe investigating Credit Suisse AG’s repackaging and sale of mortgage-backed securities, Reuters reported. Analysts have blamed the sale of mortgage-backed securities for inflating the housing market; that, they said, led to a bubble that subsequently popped, causing the implosion of firms such as Lehman Brothers and Bear Stearns.

    The bank under fire, Switzerland’s second-largest, declined to provide comment on the investigation, which sources told Reuters was being conducted by the U.S. Justice Department and the New York state Attorney General. [more]

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  • Madison Square Park

    Credit Suisse has issued a request for proposals for nearly 3 million square feet of office space it intends to lease when its current space is up, in 2017, a source told the Wall Street Journal.

    The Swiss financial services firm currently leases three spaces — all near Madison Square Park —  at 11 Madison Avenue, 1 Madison Avenue and 315 Park Avenue South, the Journal said. Although Credit Suisse has long been represented by CBRE, it is looking to undergo a complete review of its office spaces in New York City, and possibly consolidate them in one building, the Journal said. [more]

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  • Wall Street

    As new types of businesses increasingly descend upon Wall Street, the old guard is beginning to depart. According to the New York Times, many financial institutions are moving middle-tier workers out of the Financial District to cheaper office space around the country.

    With taxes, labor costs and real estate expenses so high in New York, more companies have begun “near-shoring” workers, or moving them outside of financial centers but keeping them in the U.S. While low-level jobs have already moved off-shore and top-tier traders and bankers will be in the city for the foreseeable future, accountants, human resource employees and legal support, to name a few, are being moved to places like North Carolina and Jacksonville, Fla. [more]

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  • The boutique City Club Hotel at 55 West 44th Street is set to double its room count after securing $36 million in new loans from Starwood Property Trust, according to the Wall Street Journal. City Club’s owners, led by hoteliers Stephen Brighenti, Jeffrey Klein and Russell Hernandez, will use up to $13 million of the financing to build 66 rooms on top of the existing 65.
    “Our best-case scenario is that in six to eight months we’ll have [city] approval to proceed,” Brighenti said . “Whereas the original rooms are more traditional, these will be more open and loft-like. Half of the new rooms will have balcony terraces.” … [more]

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  • The prewar office tower at 315 Park Avenue South is up for grabs with owner Craig Nassi seeking either a buyer or a joint venture partner to recapitalize the property for roughly $350 million. According to the Post, Nassi, of BCN Development, has tapped the Carlton Group to market the building, which has a Staples store in the retail portion and is also home to Credit Suisse, at around $1,000 per square foot. … [more]

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  • JPMorgan Chase has been subpoenaed by the U.S. Securities and Exchange Commission over mortgages issued before the real estate collapse that have since soured, Bloomberg News reported. The move comes amid an SEC probe into the mortgage practices of several U.S. banks, including Credit Suisse, which was subpoenaed last week. The JPMorgan subpoena is seeking information related to Bear Stearns mortgage practices, after bond insurers alleged that the bank, which JPMorgan acquired in 2008, had demanded refunds from originators but then failed to share those refunds with sellers. … [more]

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  • Home insurer Allstate has sued Bank of America’s Merrill Lynch unit over claims it fraudulently sold the insurer about $167 million of residential mortgage-backed securities, Crain’s reported. In a complaint filed yesterday in New York Supreme Court, Allstate asked for damages, including the lost market value of the securities and principal and interest payments. “Because of the systemic abandonment of underwriting standards and the resulting inclusion of toxic, highly risky mortgage loans to back the certificates, most of Allstate’s certificates have been downgraded from the highest possible ratings to junk-bond ratings,” Allstate said in the complaint. … [more]

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  • Mary Ann Tighe and 4 East 72nd Street (building photo credit: CityRealty)
    Aaron Tighe, the son of CB RIchard Ellis CEO and Real Estate Board of New York Chair Mary Ann Tighe, has just nabbed a four-bedroom, four-and-a-half-bathroom apartment at the tony 4 East 72nd Street for $5.83 million, according to the New York Observer. Aaron, a managing director at Credit Suisse, landed the co-op at a steep discount — the apartment was first listed in May 2009 by Sotheby’s International Realty brokers Meredith Smyth and Serena Boardman for $7.75 million. The apartment, sold by John Bartlett Coleman, best known for his development of the Ritz-Carlton hotel on Central Park South, was later listed by Key-Ventures broker A. Laurance Kaiser. … [more]

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  • Lenders take the reins on Xanadu

    August 11, 2010 10:00AM

    As expected, lenders foreclosed on the $2 billion stalled Xanadu project in the Meadowlands yesterday, and they’re already in talks with Stephen Ross’ the Related Companies for a partnership that would restart construction on the unfinished complex. The creditors in control now include Credit Suisse, Capmark Financial and an affiliate of Fortress Investment Group. Ross has said if it was up to him, he would “rebrand, rename and re-skin” the blue-and-white checkerboard retail and entertainment center, which is slated to have an 800-foot indoor ski slope, skydiving wind tunnels and the largest Ferris Wheel in North America. It will take an estimated $875 million to finish the project, so the $180 million in financing recently proposed by a state panel isn’t going to be enough for Related. Gov. Chris Christie yesterday told the Post through a spokesperson that “this is a project worth saving… but the circumstances have to be right.” Christie is now asking private equity firms to take stakes in Xanadu, which he says will be finished by 2014, when the nearby Jets-Giants stadium will host the Super Bowl. [Post]

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  • If misery loves company, embattled investment bank Goldman Sachs should be feeling better with each passing day. Yesterday, it was revealed that U.S. prosecutors are investigating Morgan Stanley over whether the bank misled investors in mortgage-derivatives deals it was simultaneously betting against. Today, sources told the New York Times that New York Attorney General Andrew Cuomo has launched a probe into whether eight banks duped rating agencies into inflating the grades of mortgage securities in the years before the housing market’s collapse. UBS, Citigroup, Credit Suisse, Deutsche Bank, Crédit Agricole and Merrill Lynch are targets of the probe, in addition to Goldman Sachs and Morgan Stanley.  … [more]

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  • The office building 417 Fifth Avenue, purchased by the Moinian Group and Goldman Sachs for $250 million three years ago, is in contract to a foreign buyer for $140 million, a report released yesterday by Cushman & Wakefield said.

    The 408,000-square-foot building is 96 percent leased, but 25 percent of the leases expire in the next two years, the first quarter 2010 New York Capital Markets Group report said.

    The sale price would equate to $343 per square foot, a staggering loss for the buyers.

    Cushman, which represented the seller, declined to comment. Goldman Sachs did not immediately respond to a request for comment. … [more]

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  • By the close of 2010, the country may be looking at more than $60 billion in distressed loans that are tied up in commercial mortgage-backed securities, according to a new Credit Suisse Group report released yesterday. Troubled loans are increasing by $2.7 billion a month, as of the fourth quarter of 2009, up from $1.4 billion a month during the first quarter, and the buildup could prevent a larger economic recovery. About 5 percent of loans are at least two months overdue, a more than 10-fold increase over the end of 2008 and an overwhelming caseload for special servicers. Discounting the loans that are not yet in distress, it would take such companies five and a half years to resolve the $28.8 billion in delinquent loans. “The transfer of distressed loans into the hands of stronger operators to create value at the property level where in turn they contribute to local economies is a vital step in any recovery,” according to the report. [Reuters]

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  • Joseph Moinian and Dwell95

    Developer Joe Moinian filed a lawsuit on Monday to block the scheduled auction of Dwell95, his luxury rental building at 95 Wall Street, however a last minute bankruptcy filing by the mezzanine lender has postponed the proceeding. Monian’s Moinian Group, one of the city’s biggest real estate development companies, filed suit in New York State Supreme Court against Rubicon Finance America, which held a $42 million mezzanine loan on the 507-unit property in the Financial District. Moinian had a $227 million construction loan on the building from Credit Suisse-unit Column Financial, but the value of the property fell below the loan balance due to the 2008 economic downturn, which put the mezzanine loan into default, according to the complaint. Moinian alleges he reached an agreement with Rubicon and Credit Suisse to buy the $42 million mezzanine loan for $1 million, but he says on Dec. 10 that Rubicon agreed to sell $1.4 billion in loans, including the Dwell95 loan , to a joint venture firm that included FBE Limited and Lane Capital Management. Right after the sale, Moinian alleges that FBE and Lane Capital scheduled a Dec. 30 auction to foreclose on 95 Wall Street and basically deprive him of the chance to buy back the defaulted mezzanine loan. … [more]

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  • 15 Central Park West and Ravi Singh, a Credit Suisse Group executive

    The seventh-floor apartment at 15 Central Park West owned by Credit Suisse executive Ravi Singh sold for $25 million, or $2.5 million above its most recent asking price.
    Singh, a managing director at Credit Suisse Group, sold it to a buyer identified as CPW Park Views on Dec. 15 after going into contract in November, property records posted today show.
    The sale price comes to $5,478 per square foot. Broker Nancy Candib of Brown Harris Stevens declined to comment on the sale. While Singh did not obtain the high price he first sought in September 2008, when he listed the 4,563-square-foot unit for $32 million, the unidentified condominium unit buyer paid more than the most recent listing price of $22.5 million.
    Singh bought the four-bedroom unit in March 2008 for $15.87 million. TRD[more]

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  • Boutique investment banks are expanding or popping up anew to fill a void in capital created by the real estate crash that left property owners and investors without many options for the impending $1.5 trillion in real estate loans expected to mature over the next five years. Firms like Moelis, Cantor Fitzgerald and Broadpoint Gleacher Securities Group are carving out a niche in helping their clients find a way out of bad debt by restructuring loans, finding capital and selling off assets. Newcomers to the market say their lack of “baggage” of the kind plaguing big institutions like Credit Suisse and others who were intimately involved in subprime lending, coupled with their small size, will prove advantageous. Many of the boutique firms are staffed with ex-Lehmanites, former Wachovia bankers, or other refugees of past main players, though, and these new firms are quickly expanding. Moelis has hired 100 new staffers over the past year, many of whom will help with its new real estate services, and brokerage CB Richard Ellis recently expanded its investment banking business, based in London, to America. [Crain’s]

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