August 10, 2009
Some investors are jumping back into Manhattan real estate, buying properties at huge discounts from the boom years. Last week, the private equity firm Fortress bought a nearly 600-unit condominium project in midtown Manhattan for a fraction of the price the developer paid in 2005. Listen to Lisa Chow’s interview below.
According to an article from Crane’s New York, Fortress Investment Group acquired the Sheffield57 condominium project for $20 million at auction. The 597-unit apartment building on West 57th Street had been in the process of being renovated as condominiums and was one of the largest such conversions in city history. The property was bought in 2005 for $418 million.
The acquisition is the latest example of a creditor snatching back a project from a heavily leveraged owner who hasn’t been repaying debts amid the credit crisis and falling real estate prices.
Further reading: “Fortress Swoops Up New York Condo” in the Wall Street Journal (August 7, 2009).
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