Wall Street, one of Europe’s biggest landlords, is the target of tenant fury

American firms have scooped up $237.2B distressed debt

TRD MIAMI /
Dec.December 13, 2016 12:45 PM

From the New York websiteWall Street is Europe’s biggest new landlord. Consequently, it’s also viewed as one of the biggest adversaries of homeowners and renters.

American banks like Goldman Sachs have swooped into European countries during times of economic peril, buying up cheap, distressed investments and paying little to no taxes, the New York Times reported. While this tactic has helped in these countries’ recovery, some homeowners grapple with foreclosure while others struggle to keep up with rising property values.

Goldman, Cerberus Capital Management, Lone Star Funds, Blackstone Group and others have purchased nearly 80 percent of the total distressed real estate loans sold throughout Europe — so, more than $237.2 billon worth.

In Ireland and Spain, for example, Wall Street bought up mortgages on commercial and rental properties, which helped stop property values from plunging once the debt-fueled property bubbles burst. But, as the Times noted, the recovery hasn’t been an even one, leading tenants and homeowners to blame banks and firms (whether or not they are directly involved).

“It’s important to remember that these funds are not mainstream banks or charities,” David Hall, director of the Irish Mortgage Holders Organization, told the Times. “They sell to make profit and they exit.”  [NYT] — Kathryn Brenzel 


Related Articles

arrow_forward_ios
Blackstone's Jonathan Gray and Stephen Schwarzman (Getty, iStock)

Blackstone to open office in South Florida

Blackstone to open office in South Florida
Jon Gray, 16100 Northwest 49 Avenue and 16200 Northwest 49 Avenue, Miami Gardens (Credit: Google Maps)

Blackstone snags eight industrial properties in Miami-Dade

Blackstone snags eight industrial properties in Miami-Dade
Shlomo Khoudari, Managing Partner at Elion Partners, and Stephen A. Schwarzman, CEO of the Blackstone Group, with 1800-1880 North Commerce Parkway, Weston, and 3400-3450 Park Central Boulevard, Pompano Beach (Credit: Google Maps)

Blackstone pays $46M for Broward industrial properties

Blackstone pays $46M for Broward industrial properties
Shane Neman, and Mauricio Bello Richard Waserstein, with 525 Northwest 77th Street Marriott in Boca

Blackstone sells Marriott hotel in Boca Raton

Blackstone sells Marriott hotel in Boca Raton
Fordome Investment Group’s Kris Rodriguez and Blackstone’s Stephen Schwarzman (Credit: Getty Images, Google Maps)

Blackstone plans to build new Medley warehouse

Blackstone plans to build new Medley warehouse
Placeholder image

Blackstone sells Weston hotel for $12M

Blackstone sells Weston hotel for $12M
Industrial sales are up

South Florida’s industrial sales jump to over $1B in Q3 2019

South Florida’s industrial sales jump to over $1B in Q3 2019
Daily Digest Miami

Scaramucci slashes his sights on his Opportunity Zone fund, Florida’s first LGBTQ+ senior housing development breaks ground: Daily digest

Scaramucci slashes his sights on his Opportunity Zone fund, Florida’s first LGBTQ+ senior housing development breaks ground: Daily digest
arrow_forward_ios

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

Loading...