Wilbur Ross: Commercial crash on its way


TRD NEW YORK /
Oct.October 30, 2009 04:18 PM

A massive U.S. commercial real estate crash is in its beginning stages, billionaire Wilbur Ross said today. The WL Ross & Co. CEO, who is also working on a government program to rid banks of their toxic assets, said he is practicing extreme caution on the commercial real estate investments front, especially with regard to office spaces, which are rapidly shedding tenants. Though the Public-Private Investment Program has made $1.5 billion in pooled government and private funds available to his company for purchasing banks’ distressed assets, Ross said he had used less than $100 million of those funds by Oct. 15, and that the money he spent went toward residential mortgage-backed securities rather than commercial properties. Earlier this month, WL Ross, along with several other firms led by Starwood Capital Group and TPG, agreed to buy $4.5 billion in real estate from the seized Corus Bankshares, after the bank’s investments in construction loans for condominiums went sour. [Bloomberg]


Related Articles

arrow_forward_ios
871 Bushwick Avenue in Brooklyn (Credit: Google Maps)

Joseph Brunner lands $130M refi for massive Bushwick rental building

Inside San Francisco’s office market: Developers win “beauty contests” and lease entire buildings within months

Inside San Francisco’s office market: Developers win “beauty contests” and lease entire buildings within months

Starwood Capital’s Barry Sternlicht, Holland Partner Group CEO Clyde Holland, and a rendering of 550 Harborfront

Starwood’s $500M Opportunity Zone fund is buying in LA

Starwood Capital Group CEO Barry Sternlicht and a rendering of 425 Westchester Avenue (Credit: Wikipedia)

Starwood, AB Capstone developing mixed-use complex in South Bronx Opp Zone

Macerich’s tough Q1 comes amid store closures, redevelopment plans

Macerich’s tough Q1 comes amid store closures, redevelopment plans

Barry Sternlicht’s Starwood Capital is coming to the Meatpacking District

Barry Sternlicht’s Starwood Capital is coming to the Meatpacking District

Starwood’s CEO hates the Opportunity Zone program. Guess whose company just launched an OZ fund?

Starwood’s CEO hates the Opportunity Zone program. Guess whose company just launched an OZ fund?

Real estate firms flocked to Israel in search of cheap debt. Now the market’s turning.

Real estate firms flocked to Israel in search of cheap debt. Now the market’s turning.

arrow_forward_ios
Loading...