Posted 12/15/2023, 6:11:46 PM
Interest Rate Spike Drains Liquidity from NYC Commercial Real Estate Market, Smaller Lenders Struggle to Fill Void Left by Signature Bank Failure
- Interest rates rapidly increased in 2022-2023, severely reducing liquidity and transaction volume in NYC commercial real estate market
- Signature Bank's closure left a major void in multifamily lending that smaller banks are struggling to fill
- FDIC is selling and restructuring Signature's $33B CRE loan portfolio; Blackstone acquired 20% stake in $16.8B pool
- Private credit funds are helping fill gaps, with lending up 60% YoY in 2022 to estimated $333B
- Market turbulence will continue in 2024 but some predict rate cuts starting that year, while struggling owners face tough decisions