Real Estate News

Junior lenders to blame for re-defaults?

The culprit behind the limited success of loan modifications may have nothing to do with complex paperwork, after all. Instead, many housing experts say, second mortgages -- like home equity loans and lines of credit -- are largely to blame. The Wall Street Journal reported that commercial banks, savings institutions and credit unions hold $963 billion in second mortgages with $442 billion of that on the balance sheets of the nation’s four largest banks. Because second mortgages are supposed to take the first loss on a property in the event of a modification or short sale, many are essentially worthless at a time when so many American homeowners are underwater and banks are, unsurprisingly, reluctant to write them down. If second mortgages were modified, too, the threat of re-default might loom less large, said Laurie Goodman, a mortgage analyst at Amherst Securities. Second mortgages have also been slowing the success of short sales, brokers have reported, as banks holding the second lien on a property often refuse to approve the deal. [WSJ]

Corcoran names Robby Browne salesperson of year at annual awards ceremony

From left, Corcoran's Pamela Liebman and Tresa Hall gave out the annual company awards to Robby Browne, Leighton Candler, Dennis Hughes, among others

From left, Corcoran's Pamela Liebman and EVP of sales Tresa Hall gave out the annual company awards to Robby Browne, Leighton Candler, Dennis Hughes, among others

The Corcoran Group held its annual Manhattan and Brooklyn awards ceremony Tuesday, with Robby Browne, a senior vice president and associate broker, taking top honors as Salesperson of the Year. The event was held at the Nokia Theater in Times Square with guest speakers Real Estate Board of New York Chairwoman Mary Ann Tighe and New York City restaurateur Danny Meyer. Corcoran CEO Pamela Liebman and Executive Vice President of Sales Tresa Hall presented the awards. In addition to Browne, winners included Carrie Chiang, who was named East Side Salesperson of the Year, Sherry Matays, who was recognized as West Side Salesperson of the Year, Fabienne Lecole as Carnegie Hill Salesperson of the Year, and Julie Pham as Chelsea Salesperson of the Year. Lisa Fitzig was named Manhattan Rookie of the Year and Dennis Hughes was rental agent of the year for Manhattan. Leighton Candler received the Deal of the Year award, though as of press time the company remained mum on the deal in question. For a picture from the ceremony, click here. TRD

Marketing prewar before it was fashionable

A brochure for 35 Prospect Park West (click image for larger version)

From the February issue: When a 3,500-square-foot penthouse duplex at 35 Prospect Park West came on the market in the summer of 2007, the Corcoran Group trumpeted it as "amazing, like no other." The five-bedroom Park Slope co-op, with its "glorious terrace" and "most beautiful sunsets," sold for $5.1 million the following August. But back when the 1929-era building was still open to renters, grandiosity didn't quite fit. An early advertisement for the Emery Roth-designed building lured prospective residents with prices "below those you might expect to find in such a fine structure and pleasing environment." The ad, from a new Columbia University collection of more than 9,200 real estate brochures dating from the 1930s to the 1970s, echoes a familiar refrain in Brooklyn real estate in the eras before the borough was trendy.

One-time 485 Lexington Avenue buyers call foul against SL Green

485 Lexington Avenue

The one-time buyers of a 49.5 percent stake in 485 Lexington Avenue, located between 46th and 47th streets, are suing SL Green for breach of contract, alleging that the real estate investment trust had made a deal with them out of desperation, only to negate the transaction once it became more fiscally stable, Crain’s reported. While insiders said that the $504 million deal broke down because the servicer CW Capital refused approval, the plaintiffs in the suit, two companies known as Gilmore and Optibase, which had intended to purchase the building stake under a joint venture called “Mazal,” claim differently. They say that SL Green kept them in the dark regarding its negotiations with CW Captial and that the servicer’s requests were outlandish and unreasonable. David Scharf, Mazal’s lawyer, said that something was amiss. “We believe there is something nefarious going on here,” Scharf said. “SL Green was looking for a reason to back out.”

State legislators take aim at eminent domain

From left: Assembly member Richard Brodsky and State Senator Bill Perkins

State lawmakers have proposed a legislative package to limit the power of eminent domain. The proposed laws, spearheaded by Assembly member Richard Brodsky and State Senator Bill Perkins, aim to limit eminent domain’s scope by creating a commission to review the state’s eminent domain practices and by ensuring a greater level of compensation for property owners’ whose land is seized. Many like Brodsky and Perkins contend that New York State’s eminent domain laws are woefully outdated -- while many other states have updated their laws to protect homeowners, New York has made little to no change in its property seizure procedure they say. Even so, Lisa Willner, a public affairs manager for the Empire State Development Corporation, an agency tasked with helping businesses and enhancing the financial growth of the state, said that limiting eminent domain rights could imperil the fiscal future of many developers. “Eminent domain is an essential governmental tool that allows for the implementation of important development projects to the benefit of the public at large,” Willner said.