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On this episode of Bisnow Reports, Samir Tejpaul, managing director at Square Mile Capital, talks about whether or not there’s a wave of distress coming for the New York City office market and how lenders will view modifications when loans come due.
“My gut tells me we will find more time — borrowers will find more time and lenders will find more time, because real estate is a timing business, and we recognize that," he said on the podcast. "Right now what people need is more runway to execute their business plan, potentially find more capital to invest or deploy."
He also discusses how the location of office assets will play into financing decisions in a greater way than their age.
“Many of the older product, office assets on Park Avenue, whether it's north or south of Grand Central, have intrinsic quality that you cannot replace," he said. "If you are someone who lives in the suburbs of Long Island, being proximate to Grand Central is extraordinarily important."
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