With condo prices slipping at the top end of the market and the potential impact of the presidential election confounding brokers and experts alike, the New York City real estate community is facing uncertainty on several fronts.
In a bid to explore some of the issues the industry faces, The Real Deal sat down with Billy Macklowe, CEO of William Macklowe Company, to talk about the market, the election aftermath and demand for condominium product.
Macklowe, son of developer Harry Macklowe, knows a thing or two about leverage. His father was one of the most high-profile figures to lose his shirt in the last downturn.
But this time, it’s different, he said.
“There are different metrics around leverage,” he said, noting that condo buildings can’t get score the same high loan to value debt they could during the last cycle. That means, “there’s less pressure from banks,” he said.
Macklowe’s firm is currently selling units at 21 East 12th Street, the site of the former Bowlmor Lanes venue south of Union Square. The building is 40 percent sold, averaging $3,300 to $3,400 per square foot, he said.