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Sympathy for real estate developers...:mad:
A bill winding its way through Congress proposes to prop up deteriorating apartment complexes by injecting $2 billion from the Troubled Asset Relief Program into an effort to stabilize multifamily properties in default or foreclosure.
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Many developers during the housing boom bought rent-regulated apartments by borrowing against the properties themselves and betting they could make hefty returns by converting them into market-rate buildings.
However, thanks to the recession and the collapse of the real estate market, many developers are now struggling to make mortgage payments, let alone finance repairs and upkeep of the properties they own.
"Just about everyone who purchased an asset in 2006 and 2007 is under water, especially the rent-stabilized complexes bought in upper Manhattan, the Bronx and Brooklyn," said Dan Fasulo, managing director of Real Capital Analytics, a real estate research and consulting firm.
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Nevertheless, Gluck, who stressed he maintains his properties, said the bill sounded like a good idea, and that real estate developers might as well collect from the government since everyone else was already getting handouts.
"As long as there is a long list of people out there with their caps in hand, why should everyone else be getting a free run?" Gluck said. "If it staves off some bank foreclosures, it is good for real estate and good for tenants."
http://www.nypost.com/seven/08132009..._2b_184293.htm
A bill winding its way through Congress proposes to prop up deteriorating apartment complexes by injecting $2 billion from the Troubled Asset Relief Program into an effort to stabilize multifamily properties in default or foreclosure.
...
Many developers during the housing boom bought rent-regulated apartments by borrowing against the properties themselves and betting they could make hefty returns by converting them into market-rate buildings.
However, thanks to the recession and the collapse of the real estate market, many developers are now struggling to make mortgage payments, let alone finance repairs and upkeep of the properties they own.
"Just about everyone who purchased an asset in 2006 and 2007 is under water, especially the rent-stabilized complexes bought in upper Manhattan, the Bronx and Brooklyn," said Dan Fasulo, managing director of Real Capital Analytics, a real estate research and consulting firm.
...
Nevertheless, Gluck, who stressed he maintains his properties, said the bill sounded like a good idea, and that real estate developers might as well collect from the government since everyone else was already getting handouts.
"As long as there is a long list of people out there with their caps in hand, why should everyone else be getting a free run?" Gluck said. "If it staves off some bank foreclosures, it is good for real estate and good for tenants."
http://www.nypost.com/seven/08132009..._2b_184293.htm