Real Estate News

10 big commercial real estate busts

Loan balance: $3 billion
Size: N/A
Location: New York, N.Y.

It was the deal that would underscore both the highs and the lows of the Manhattan real estate market. When insurance giant MetLife put the 11,000-unit apartment complex on the block in 2006, it became one of the most coveted commercial properties, sparking a fierce bidding war.

In the span of a little more than three years however, Stuyvesant Town/Peter Cooper Village quickly morphed from the proverbial brass ring into a white elephant as its buyers choked on the massive amount of debt used to finance the purchase. The owners – Tishman Speyer Properties and BlackRock Realty — handed over the property to its creditors in January.

What Canada’s New Mortgage Rules Mean to You

With Canadian house prices rising and sales booming, the government is “acting to prevent Canadian households from getting overextended, and acting to help prevent some lenders from facilitating it,” says Minister of Finance Jim Flaherty. New mortgage rules make it a little tougher for buyers to qualify for high-ratio mortgages, and are designed to discourage speculators.

After a brief lull early in 2009, Canada’s housing market has been on a roll, with double-digit year-to-year house price increases across the country. A combination of low interest rates and few new listings has driven up prices and caused multiple bidding scenarios in many communities. This has prompted some analysts to suggest that the housing market is forming a bubble that could soon burst, as happened in the United States. Read More

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