NYC Apartment Landlords Are Burned In Gentrification Crash

(Bloomberg) – New York’s home investors are suddenly waist-deep in distress. As of December, they were nearly 150 times the year before, with $ 395 million in debt backed by mortgage bonds, according to Trepp commercial mortgage data. secured securities. Tenants in rental-stabilized units owe at least $ 1 billion in rent, and wealthier ones are fleeing the city, leaving vacancies and pushing newly built luxury towers into foreclosure. For years, as New York crime declined and rents rose, the investor devoured apartment buildings. But with the city’s economy and culture being devastated by Covid-19, increasing job losses have derailed the gentrification boom and put financial pressure on landlords: “The people who specialize in mortgage training are the busiest people in New York “said Barry Hersh, a clinical adjunct professor of real estate at New York University. The developers …

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