Bulk Condo Buyers Descend on Manhattan, Looking for Cut-Rate Deals
New York’s condominium market has been hit severely during the pandemic, as fewer individuals were able to or wanted to purchase units. With development loans now coming due, residential developers have started to invite bulk buyers to take over many condo units at once. While it is not unlikely for these fund managers and real estate firms to purchase the units at discounts between 25% and 35%, developers are tempted by selling bulks of units at once, instead of slowly selling the units of piece by piece. “They might not admit it and it’s all very sort of confidential and behind the scenes, but almost every [developer] is trying to do the same thing right now. And that’s to do bulk transactions,” said AnneMarie Alexander, a real-estate broker at Douglas Elliman Real Estate.
Single-Family Rental Homes May Be Riskier Than Realized
A recent risk report, published by RealtyTrac, found that single-family rental property owners in 48% of the 3,413 US counties analyzed are considered to be at an above-average risk of default. 90% of the properties at risk are owned by small investors, who own less than 10 properties. The risk assessment of the report was mainly based on three criteria: unemployment rates, loan-to-value ratios of rental properties, and percentage of rental units. 44% of the riskiest counties were in Florida, New York, and California. The least risky county is Salt Lake County in Utah.