$9b worth of worry for New York City property owners.In the first three months of 2009, at least $23 billion of significant US commercial properties were added to RCA's total of distressed real estate assets, which has now reached over $72 billion. New York New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of and its suburbs have 189 known troubled assets valued at nearly $9.2 billion. Manhattan is ranked 32th overall among US markets in distress as a percentage of total property investment volume in the latest report for New York City-based Real Capital Analytics. Office properties comprised some 55% of troubled assets in the NYC NYC abbr. New York City NYC New York City market, according to according to prep. 1. As stated or indicated by; on the authority of: according to historians. 2. In keeping with: according to instructions. 3. the report. Distress is largely due to a notice of default, foreclosure foreclosure Legal proceeding by which a borrower's rights to a mortgaged property may be extinguished if the borrower fails to live up to the obligations agreed to in the loan contract. , bankruptcy filing or mechanics' or tax liens. CMBS CMBS See: Commercial Mortgage Backed Securities loans account for just 30% of the total amount of distressed assets that are currently known. Assets in special servicing, the CMBS equivalent to distressed, totaled approximately $17b at the end of February, according to Realpoint. Globally, property distress totals at least $150b, although transparency issues cloud the overall picture. The US represents nearly half of the global total, similar to its share of transactions at the height of the market. The UK, Japan, Australia and Spain also have large concentrations of troubled properties. For more information on worldwide distress, see the most recent Global Capital Trends report at www.rcanalytics.com. In the US, the concentrations of property distress are in the expected places. Las Vegas Las Vegas (läs vā`gəs), city (1990 pop. 258,295), seat of Clark co., S Nev.; inc. 1911. It is the largest city in Nevada and the center of one of the fastest-growing urban areas in the United States. , South Florida, Detroit, Southern California Southern California, also colloquially known as SoCal, is the southern portion of the U.S. state of California. Centered on the cities of Los Angeles and San Diego, Southern California is home to nearly 24 million people and is the nation's second most populated region, and Phoenix all have more than their fair share of trouble when scaled to market size. In addition, high levels of distress are found in tertiary markets across all regions. Within many markets, patterns and concentrations of distress in certain submarkets are putting stress on assets that may be performing well and face no financing hurdles. However, just as in the residential markets, a foreclosed property tends to pull down the value of those around it. But unlike the residential sector, distressed commercial properties threaten to undercut rents as well. |
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