subject: Amidst Foreclosures, Loans of Buildings are Being Restructured [print this page] The US economy is on a tailspin what with unemployment at an all-time high. As people lose jobs even those with excellent credit history are faltering on mortgage payments. Hence, foreclosures have become common. Now the Federal government has come up with a program to stem foreclosures. As part of this program, loans of borrowers are being revised, first on an experimental basis and then permanently. New York-based developer Joseph Moinian has restructured the debt for three Manhattan buildings. The debt amount totals $550 million. This reveals that lenders are willing to refinance troubled properties.
The Moinian Group renegotiated the loan of $340 million for a huge skyscraper. The group also got a fresh loan of $130 million for Ocean Residences. It also managed loan extension on a 22-story property 17 Battery Place. There has been an extension of a few present mortgages and new ones. The amount was the same as now.
It may be pointed out that $180 billion of commercial property in the US is in various stages of default or bankruptcy. This has been revealed by Real Capital Analytics, a New-York based research firm. Property values across the world have crashed because of credit crunch and recession across the world. This has made it difficult for property owners to refinance loans that have matured. Ultimately these loans have been pushed to foreclosure.
Harry Macklowe, who is a developer in New York and a Los Angeles based equity firm, CIM Group have plans of paying off creditors on a site in Park Avenue. SL Green Realty Corp said that it received a $475 million loan which replaced a $625 million mortgage.
Fifty five year old Moinian established an empire of New York real estate properties measuring about 20 million square feet. He has a stake hold in Chicagos Willis Tower. Earlier known as Sears Tower, this is the US tallest building. Moinian has acquired above $4.4 billion of space since the last one decade. This was done by borrowing from lenders. The lenders bundled the mortgage with other debt. The Managing Director of Real Capital, Dan Fasulo, said Moinian was very talented. During the boom period, he was able to make money for investors. However, with the real estate crash, he was not able to restructure debt and that was his problem like many others. Moinian also received the new mortgage for the apartment building Ocean residences.
resumo: The US economy is on a tailspin what with unemployment at an all-time high. As people lose jobs even those with excellent credit history are faltering on mortgage payments. Hence, foreclosures have become common. Now the Federal government has come up with a program to stem foreclosures.
Amidst Foreclosures, Loans of Buildings are Being Restructured
By: Julie Thompson
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