From the archives: House of cards comes tumbling down

From hesitancy to headaches, how subprime fallout will affect city's real estate pros

New York /
Mar.March 22, 2015 01:00 PM

Since delinquencies among subprime loans that had been packaged and resold on secondary markets reached fever pitch this summer, there have been tremors in not only the New York City residential real estate market, but in the thriving commercial one as well.

The era of cheap credit has unraveled quickly, as a crackdown on risky loans has tightened standards among all lenders. The fallout has affected all parts of the New York City real estate food chain.

It’s hit residential sales brokers, some of whom have seen their deals jeopardized as lending terms change and interest rates rise, as well as developers of office buildings, who are finding it more difficult to obtain financing from lenders.

Others, like commercial brokers, real estate attorneys and new development marketers, have also felt an impact. The Real Deal set out to capture the reaction to the subprime mortgage debacle and credit crunch from individuals on the front lines in several sectors of the New York City real estate industry. Read the full article from the September 2007 issue after the jump.


Related Articles

arrow_forward_ios
Democrats numerous attempts to close the carried-interest loophole have failed
Developers, rejoice: Carried-interest loophole is saved again
Developers, rejoice: Carried-interest loophole is saved again
Wyoming ranch with ties to Walt Disney hits market for $71M
Wyoming ranch with ties to Walt Disney hits market for $71M
Wyoming ranch with ties to Walt Disney hits market for $71M
Seattle Hotel Group's Bruce McCaw and property at Hunts Point, Washington (Getty, Windermere Real Estate)
Bruce McCaw’s Northwest estate hits the market at record-setting price
Bruce McCaw’s Northwest estate hits the market at record-setting price
Extell's Gary Barnett and 217 West 57th Street (Barnet by Paul Dilakian, Itrytohelp32, CC BY-SA 4.0, via Wikimedia Commons)
Barnett: Central Park Tower will fall short of $4B sellout
Barnett: Central Park Tower will fall short of $4B sellout
From left: Extell's Gary Barnett and JDS Development’s Michael Stern along with One Manhattan Square, The Narrows, and 111 West 57th Street (Extell, JDS Development, Getty Images, The Narrows Condo)
New development sales plummeted 30% in July
New development sales plummeted 30% in July
Zillow's Rich Barton, Allen Parker (Zillow Group, Getty)
Zillow brushes off Citysnap threat, says agent advertising will fall
Zillow brushes off Citysnap threat, says agent advertising will fall
257-263 West 34th Street and Cornell Realty’s Isaac Hager (Google Maps, Getty)
Isaac Hager seeks bankruptcy for Penn Plaza stake, but Churchill resists
Isaac Hager seeks bankruptcy for Penn Plaza stake, but Churchill resists
Douglas Elliman Chairman and CEO Howard Lorber (Getty Images)
Sell, sell, sell: Lack of listings dampens Elliman earnings
Sell, sell, sell: Lack of listings dampens Elliman earnings
arrow_forward_ios

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

Loading...