Fannie cuts off funding in Battery Park City

TRD New York /
Mar.March 25, 2010 05:48 PM

Fannie Mae has backed out big time at Battery Park City, ceasing its purchase of individual mortgages on apartments, according to Crain’s, making it increasingly difficult to sell condos and co-ops in the neighborhood. While Fannie Mae has taken a stricter stance across the country, residents and brokers at Battery Park City say the federal agency has shown an especially drastic pullback there, due in part to the rapidly-changing ground lease fees. Unlike other neighborhoods in the borough, residents at Battery Park City pay to rent the land where their buildings stand — and that rate could, potentially, double when the current lease expires in 2011. Richard Martin, a senior vice president with DE Capital Mortgage, said that the neighborhood is suffering as a result. “Battery Park City is getting hit hard,” Martin said. “Underwriters consider the area a declining market.” And sales figures in Battery Park City are reflecting that pain: residential sales in the neighborhood dropped 59 percent in February 2010 compared to the same month a year earlier, according to StreetEasy.


Related Articles

arrow_forward_ios
Gov. Andrew Cuomo with Judge Lawrence Marks and Judge Daniele Chinea (Getty, Linkedin, iStock)

Flip-flop on eviction ban extension highlights state’s chaotic response

Flip-flop on eviction ban extension highlights state’s chaotic response
Nelson Rockefeller and 812 Fifth Avenue Photos via Getty; StreetEasy; Google Maps)

Fifth Ave co-op owned by Rockefeller family hits market

Fifth Ave co-op owned by Rockefeller family hits market
Joe Jonas and Sophie Turner with 199 Mott Street (Getty; Modlin Group)

Joe Jonas and Sophie Turner list NYC pied-à-terre for $5.9M

Joe Jonas and Sophie Turner list NYC pied-à-terre for $5.9M
A million homeowners haven’t requested forbearance on their mortgages — and are now at risk for foreclosure and eviction. (iStock)

1M struggling homeowners didn’t request forbearance. Now what?

1M struggling homeowners didn’t request forbearance. Now what?
(iStock)

Landlords lost about $9B in rental payments last quarter: report

Landlords lost about $9B in rental payments last quarter: report
Jennifer Lopez and Alex Rodriguez with their Malibu beach house (Getty; Courtesy Compass)

J-Lo and A-Rod part ways with Malibu “fixer-upper” for $6.8M

J-Lo and A-Rod part ways with Malibu “fixer-upper” for $6.8M
State Sens. James Gaughran, Brian Kavanagh and Kevin Thomas (NY Gov; Getty)

State Senate hearing confronts racial bias by brokers

State Senate hearing confronts racial bias by brokers
State Sen. Julia Salazar, Barbara Corcoran and Gov. Andrew Cuomo (Getty)

State says Barbara Corcoran is on board with broker-fee ban

State says Barbara Corcoran is on board with broker-fee ban
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...