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Real Estate Roundup 3.25.20

Coronavirus (Credit: Lee Health)

Real Estate Roundup:

Major Story: Senate leaders and the Trump administration reached agreement early this morning on a $2 trillion stimulus package to deal with the economic impact of the Coronavirus epidemic. (WashingtonPost)

Coronavirus Coverage

  • The Federal Housing Finance Agency will suspend mortgage payments for landlords affected by the coronavirus, expanding its support of renters in addition to homeowners. The program applies only to multifamily owners with Fannie Mae and Freddie Mac loans, and on the condition that they do not evict tenants affected by the coronavirus fallout. (CO)
  • Mortgage companies are bracing for a severe cash crunch when Americans who lose jobs and income because of the coronavirus pandemic stop making payments on their home loans. The companies, such as Quicken Loans Mr. Cooper Group, expect a wave of missed payments from borrowers as early as next month that will force them to come up with tens of billions of dollars on short notice. While nobody could foresee the pandemic that triggered the current crisis, Fed economists have long warned about the nonbank service industry’s ability to withstand a liquidity shock. (WSJ)
  • Keep your eyes on the condo marketExtell Development has halted construction on Central Park Tower (AKA 217 West 57th Street). The 95-story condo tower was expected to sell more than 20 units for $60 million each. Extell has also closed its sales and leasing offices for most of its projects, though it will deliver contracted condos at One Manhattan Square, One57, and the Lofts at Pier Village. (CO)

Stock Market update

The Dow Jones Industrial Average surged more than 11% Tuesday, its biggest one-day gain since 1933, on signs that lawmakers were nearing a deal on a giant stimulus package to ease the economic fallout from the coronavirus pandemic. Speculation about the breadth and depth of an impending global recession continue to weigh on investors.

  • Heard on the Street: “This is classic bear-market moves… It doesn’t feel like there’s massive relief and confidence out there.” (WSJ)

Dated deal news

Kaufman Organization and AXA Investment Managers have closed on their acquisition of 56 West 22nd Street from the Blum family for $48.5 million. The Flatiron office building spans 67,000 SF, and is about 55 percent occupied. (CO)

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