| It’s A.D. 2009, and we’re in the midst of a "complete reordering of the real estate universe." Pardon our sci-fi intro, but the word choice is from Wolff & Samson attorney Mitch Berkey, here in front of Cipriani's. He cites property valuations readjusting downwards, loan underwriting tightening, and pro-formas being scrutinized like never before. And we’ve yet to see the full impact on financing and deals, he adds, but fear not—NYC remains the financial capital of the world, and while office asking rents and condo prices are down, the Big Apple will bounce back. |
| There will always be demand for good rental properties, and those able to stand their ground and persevere are well-positioned to survive this downturn, he says. As owners face continuing pressure from lenders, we’ll see a wave of distressed sales and further investment opportunity. Next is the multi-$100B of CMBS financing reaching maturity, but that’s a story that’s yet to unfold. In the meantime, he’s working with NJ guv Jon Corzine’s real estate advisory board to help revitalize the Garden State’s economy (which, of course, is in his best interest, with one child in college and another entering law school). |
BERKEY: BIG APPLE’LL BOUNCE BACK
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Jon Corzine, Mitch Berkey
