It may be hard to believe, but lenders are now actually sending letters of intent to provide construction financing. Construction financing, perhaps the riskiest type of mortgage financing, is available in the tri-state region for rent-regulated and other multi-family buildings. It even exists for condominium projects (and yes, I did say “condominium”).

Gino Martocci, president of the New York City and Long Island region of M&T Bank, said: “We have and continue to provide construction financing for well-capitalized clients. We are in the process of providing construction financing for a brand new hotel in the Union Square neighborhood.” Another established developer who prefers to remain anonymous, who is in the process of building a rental building off Fifth Avenue on the Upper East Side, told me that 10 financial institutions have expressed interest in the development. [more]

The rules of the game have changed for an investor to obtain mortgage
financing, according to the majority of the 12 lenders who participated
at the New York Real Estate Summit I hosted last month. Forget deals with project rent growth assumptions; the only way a bank
or insurance company is going to lend money is with hard facts.
Transactions must show the hard realities of today. Gino Martocci, a senior vice president at M&T Bank, made a comment
that was echoed by all of the traditional lenders on the panel: “We are
lending to our best customers, customers who have worked with the bank
for years, who have a strong financial statement and the capability to
support a loan even in the worst of times.” Wendy Silverstein, executive vice president at Vornado Realty Trust,
noted: “The larger the loan size, the harder it is to get it financed.” [more]