Fannie cuts off funding in Battery Park City

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
2801 Riverton Road in Cinnaminson, NJ (Redfin, Getty)
Mansion listed for $25M sets South Jersey record
Mansion listed for $25M sets South Jersey record
The Blue Man group and Astor Place Theater (Getty, Google Maps)
New Yorkers increasingly living above where they work
New Yorkers increasingly living above where they work
Connecticut Governor Ned Lamont (Registered Citizen, Getty)
Half of Section 8 vouchers have gone unused in Connecticut
Half of Section 8 vouchers have gone unused in Connecticut
Clint Eastwood and The Ranch at Fisher Creek (Getty, Engel & Völkers Vancouver/Sona Visual)
“Unforgiven” ranch listed for $19.2M
“Unforgiven” ranch listed for $19.2M
Denny Hamlin, Dale Earnhardt Jr., and Ricky Stenhouse with 355 Pelham Lane (Getty, Corcoran HM Properties)
The NASCAR effect: How racers turned Lake Norman into trophy home heaven
The NASCAR effect: How racers turned Lake Norman into trophy home heaven
From left: Fannie Mae's Hugh Frater and Freddie Mac's Michael DeVito
Government to back home loans over $1M
Government to back home loans over $1M
(Getty/Illustration by The Real Deal)
TRD Pro: 7% mortgage rates are not so bad
TRD Pro: 7% mortgage rates are not so bad
Case-Shiller, Home Prices, Housing Market, Residential Real Estate
US home prices lose more momentum
US home prices lose more momentum
arrow_forward_ios

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

Loading...