Knowing your market in any business is key. Independent evidence of market values in one of the top real estate markets in the country can be essential to surviving in the highly competitive world of New York City real estate. This is why the FDIC’s sale of a $17 billion commercial loan portfolio from the defunct Signature Bank is garnering significant interest across NYC real estate circles. Prior to being seized by regulators in March, Signature Bank was a premier lender to owners, developers and purchasers of important commercial & residential buildings in most major City sub-markets. The sale has attracted huge interest from heavyweight bidders like Blackstone Inc. and others who are currently negotiating final terms of these purchases with the FDIC. Blackstone Is Lead Bidder in Signature Bank Property-Loan Sale (msn.com)
Once the dust settles on this loan sale and the purchase prices are known, these new market values are expecting to confirm a large drop in NYC commercial property values due to a penumbra of troubles including high interest rates and low office occupancy. This new “mark to market” may also give added ammunition to hard-pressed commercial property owners challenging inflated property tax valuations in New York City and other similar assessing jurisdictions in the region. Once again, these market developments offer a compelling reason for commercial property owners to consult with a knowledgeable attorney on whether a property tax challenge would make sense.
Thank you Willets Meyer for this week’s Tax Tracker