As the New York City marketplace has regained its roar, lenders are sensing the opportunity to cash in. And in a throwback to the boom, banks are starting to lend on pro forma income and requiring less equity in real estate projects — a move that makes deals riskier. We take a look at some recent high-profile examples of this, and analyze what the trend means for the market moving forward, in our cover story, “Risk is back,” now available online.
Jared Kushner has been a well-known name in the city’s real estate circles for quite some time, but in the last year he’s upped the ante dramatically, with megadeals such as the $375 million purchase of a Dumbo portfolio and an acquisition spree in the East Village. In a profile of the young mogul, we take a closer look at Kushner’s beginnings, his biggest deals, and what lies ahead.
In “Lies in size,” we examine a quirk of the office market known as “loss factor,” which allows commercial building owners to pass a large part of their costs for the building’s common areas on to tenants.
We also present a ranking of new condos – from Gary Barnett’s One57 to Bill Rudin’s Greenwich Lane — by per-square-foot prices.
There’s a lot more to look forward to in the issue, including a look at how sellers backtrack on “best and final” offers, an analysis of the once-mighty Helmsley estate’s dispositions in the city in recent years, and a look at the Real Estate Board of New York’s annual gala.
Finally, in our Closing interview, Richard Mack, the co-founder of Mack Real Estate Group, chats about the family business, getting fired and fielding calls from Russian oligarchs.
To access the issue, click here or on the Magazine tab at the top of the website.
Enjoy the issue! – Hiten Samtani