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March 19, 2010

Two big developers hit financing difficulties

Moinian loan goes to special servicer; Forest City misses loan payment on 10 Metro Tech.

Crain's NY Business
by Theresa Agovino

Might there be trouble in Ratnerville?

In another sign of distress in the city's real estate market, Forest City Ratner failed to make mortgage payment on 10 Metro Tech Center, part of its huge office complex in downton Brooklyn. As a result that loan was placed on a watch list, Trepp said.

The Forest City news is somewhat surprising because it has not been a fixture on such lists.

Many developers have faced severe challenges in repaying loans that were made when lending standards were lax and capital was plentiful as banks have subsequently severely tightened access to cash.

It is too soon to say whether the loan on 10 Metro Tech is headed for a special servicer. The loan has a balance of $52 million, according to Trepp. Tenants at the building include the International Revenue Service and New York City's Human Resources Administration.

Forest City Ratner didn't have an immediate comment.


NoLandGrab: Hmm, let's see, lobster sliders for Bloomie, Marty, Hova and the gang at the groundbreaking ceremony, or this month's mortgage payment? Ah, maybe we'll pay the mortgage next month. Hey, Proko, want to buy an office complex?

Posted by eric at March 19, 2010 2:27 PM