In case anyone was wondering why more and more big-name developers are raising distressed real estate funds: first-time foreclosures are at the highest level since the great recession.
Lenders foreclosed on 859 properties in the Big Apple in the third quarter, up 79 percent from a year ago, according to online real estate database Property Shark. The number of foreclosures increased by a staggering 112 percent in Brooklyn and rose 27 percent in Queens.
The previous peak was the second quarter of 2009, with 912 foreclosures.
Elsewhere in the U.S., foreclosures have been declining for years and hit a ten-year low last year, Crain’s reported.
Developers Steve Witkoff and Michael Ashner recently launched a $150 million investment fund to buy distressed properties. Other investors like Delshah Capital and Madison Realty Capital have also set up funds that focus on acquiring distressed properties. [Crain’s] — Konrad Putzier