Dollar amount of Manhattan’s distressed real estate halves

TRD New York /
Aug.August 15, 2011 09:00 AM

The total dollar amount of Manhattan assets classified as distressed has halved since 2008, Crain’s reported, a sign that the market is rebounding at a healthy pace.

Three years ago, $30.6 billion of assets in Manhattan was in foreclosure, bankruptcy or in the process of having its loans modified. The figure has dropped to $15.2 billion, and 30 percent of that dollar amount is tied to apartment complex Stuyvesant Town and Peter Cooper Village.

“This happened faster than we would have imagined,” said Dan Fasulo, managing director of Real Capital Analytics.

The drop in distressed properties can be attributed to an accumulation of single transactions, Crain’s said, and bigger landlords buying up distressed loans. Vornado Realty Trust, for example, bought up three of the eight large distressed assets sold in the first half of 2011, including a stake in 280 Park Avenue. There is also increased interest from investors in commercial real estate, with $13.9 billion in commercial properties selling in the borough last year, almost four times the amount sold in 2009.

Some Manhattan properties still run the risk of entering into distress. Crain’s estimated that $5 billion to $10 billion worth of real estate is close to falling into that category. [Crain’s]


Related Articles

arrow_forward_ios
Vornado's Steve Roth and 220 Central Park South (Credit: Getty Images, iStock)

Free and clear: Vornado pays off debt at 220 CPS

Vornado chairman and CEO Steven Roth, and 608 Fifth Avenue (Credit: Getty Images)

“Negative surprises”: Vornado execs talk retail struggles on Q2 earnings call

Steven Roth, CEO of Vornado and 640 Fifth Avenue (Credit: Getty Images and Vornado Realty Trust)

Bank of China issues $500M to Vornado in refi of 640 Fifth Avenue

11 Penn Plaza and Apple CEO Tim Cook (Credit: Vornado, Getty Images)

Apple is in talks for a lease at Vornado’s 11 Penn Plaza

2041 Adam Clayton Powell Junior Blvd in Harlem (Credit: Google Maps)

Rent-stabilized portfolio in Harlem trades for $118M

Clockwise from left: 1290 Sixth Avenue, 40 Wall Street, President Donald Trump, Trump National Doral in Miami and Trump International Hotel in Washington, DC (Credit: Getty Images, Vornado, Wikipedia)

Trump Org’s office holdings help offset hotel losses: analysis

From left: Jeff Bezos with 212 Fifth Avenue and Ken Griffin and Sting with 220 Central Park South (Credit: Getty Images, StreetEasy)

Records, records and more records: Resi deals set higher bar in 2019

EōS Fitness is planning to open as many as 20 luxury gyms in Manhattan to compete with Stephen Ross' Equinox (Credit: EōS Fitness, Getty Images)

Fitness chain plans to kick sand in Equinox’s face

arrow_forward_ios
Loading...