Madoff Scandal Shaking Real Estate Industry

Almost no segment of New York City’s real estate industry was spared in the Madoff scandal, which may be history’s largest Ponzi scheme: commercial brokers large and small, little-known developers and prominent families like the Wilpons and Rechlers all lost money to Bernard L. Madoff, industry executives say..............

“They knew him from golfing in the Hamptons. They knew him from the locker rooms,” Mr. Reisman said. “He was considered a wizard.”

Mr. Reisman said his clients were especially concerned because they counted on Madoff investments to complete some of their real estate projects, pledging their investments as collateral for projects. Those developers fear that when their banks realize that their investments with Mr. Madoff have disappeared, they will demand new collateral from other sources, Mr. Reisman said.
Finding those alternative lenders will be difficult given the financial crisis — and given that many other real estate investors have been hurt by the Madoff case.

Read the full article by Christine Haugney, New York Times, Dec 17 2008

Comments

Post a Comment

Popular posts from this blog

Fire safety regulations for apartment blocks to be proposed by CPD in coming weeks

Regulations will prevent fire incidents from escalating  The Civil Protection Department is in the coming weeks proposing a number of fire safety regulations for apartment blocks.  The measures follow recommendations in an inquiry led by Magistrate Joseph Mifsud following a fire at 77 “Waterways” Flat 3, Triq l-Aħmar, Marsascala, during which a man had lost his life. Six people had also been hospitalised.  They include that fire drills led by the administrator should be carried out in every apartment block, that each block should have fire extinguishers u fire blankets at a place that was visible and accessible and that there should be a smoke and fire detection alarm in the common area.  Other proposals are for emergency exit signage, easy accessibility to roofs, and that callers to emergency number 112 should give as much information as possible and identify a landmark for a faster response time.  These, the CPD said in a statement, were some of the measures that could be
Read more

Scheme to regenerate village core buildings launched

First-time buyers of scheduled buildings will be given a 70 per cent rebate on restoration works, thanks to a scheme launched this morning. The rebate, up to a maximum of €100,000, will cover facade and interior works, balconies, and even some forms of garden works. First-time buyers of property in Urban Conservation Areas meanwhile will be eligible for a maximum rebate of €10,000. The scheme, which will start on January 16, has an €18 million cap and is on a first-come first-served basis. Receipts must be provided. The Irrestawra Darek scheme was launched by the Planning Authority this morning to help with the regeneration of Malta's village core areas. The scheme was first announced by Finance Minister Edward Scicluna in the last Budget. The planning authority said it had reached an agreement with the Local Council Association to help councils provide residents with a conservation architect. Times of Malta online article here.
Read more

The Villa Madama auction

Image
Something is clearly amiss. A landmark property has just gone under the hammer, selling at an unbelievable price when compared to other properties. But here's the quandary. Can such a property be benchmarked at all? My starting point is pretty basic. How many upmarket apartments can be bartered for this well maintained landmark property of historical value located next door to the President of Malta's palace?The shocking answer seems to indicate not even two.
Read more