Printer Friendly

Developers going back to the bank.

Byline: Candace Taylor

From the June issue: Potential buyers are musing about why — in light of the new market landscape — some developers of new condo developments haven't dropped their prices. "Seems like [Williamsburg condo development] 80 Metropolitan is another building that's stubbornly clinging to the pricing they set before things dropped," wrote one poster on the real estate Web site StreetEasy. What incredulous buyers often don't realize is that across-the-board price cuts have not been easy for most developers to make, because price reductions must be cleared with lenders. Yet with price cuts the must-have amenity of the moment, discounts have become increasingly important to the survival of many projects. As a result, sponsors and lenders have recently started coming together to make those cuts happen. Indeed, some formerly obstinate lenders are now loosening their restrictions so developers can reduce prices below previously agreed-upon minimums, known as "release prices."
COPYRIGHT 2009 Korangy Publishing, Inc.
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 2009 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Author:Taylor, Candace
Publication:The Real Deal
Date:Jun 12, 2009
Words:151
Previous Article:Priciest, cheapest units to hit the market.
Next Article:Family moves secretly into for-sale home.
Topics:


Related Articles
LOAN GOAL; AIB blames bad lending to developers as crisis bank cuts profits forecast by millions.
MPs target bank after flat developer's collapse; CONSTRUCTION.
EUR90,000,000 ,000; How much our banks are in debt.
THAT'S BANK OUT OF ORDER; Bosses cost taxpayer EUR300m - but are still in their jobs.
CPAG to rally against the banks.

Terms of use | Privacy policy | Copyright © 2021 Farlex, Inc. | Feedback | For webmasters