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

Brokerage firms are strategizing ways to make up losses after the cost of application fees was capped at $20. (Credit: iStock)

Brokerages on rental application fee cap: “It hurts”

Alex Rodriguez (Photos by Guerin Blask)

A-Rod is coming for NYC and SoFla real estate

There will be 70 agents based at the new office (Credit: iStock)

Compass opens Long Island City office as new-development sales surge

993 Fifth Avenue and Gilbert Harrison (Credit: Google Maps and GLC)

Retail exec sells Fifth Avenue co-op to Chanel heir for $19M

The Daily Digest - Tuesday

New life for Toys “R” Us, Masa Son is “embarrassed” with the Vision Fund: Daily digest

Nooklyn CEO Harley Courts (Credit: iStock)

Brokerage slashes agent commissions, delays payments after rent law change

The Daily Digest - Tuesday

NYC apartment prices hit 4-year low, Pacific Park developers reveal new plans: Daily digest

LeBron wanted it and California’s governor signed it. What the college athlete compensation law means to real estate