enzo
December 24th, 2002, 08:41 PM
NY Post
There are two ways to view downtown: in terms of its obvious weakness, or in terms of its less obvious stability.
Preferring to take the latter view is Scott Singer, executive vice-president of mortgage brokers Singer & Bassuk, which has arranged more than $500 million in financing for downtown since 9/11.
"There was a fear for a significant period after 9/11 that lenders would redline downtown," Singer said. "Clearly, we've shown that isn't the case."
Prior to the terrorist attack, Singer & Bassuk had arranged financing for about 65 percent of Lower Manhattan's residential conversions.
Since then, among other transactions, it has arranged a $190 refinancing of 1 Seaport Plaza and a $58 million first mortgage on 52 Broadway, new home of the United Federation of Teachers.
"At the end of 2001," Singer said, "you had the worst possible thing: uncertainty. No one knew if anyone would sign leases again.
"Now it's clear that things have stabilized. We lost a lot of tenants and [have] given a lot of space back. But it's all at a measurable level and people are not fleeing the neighborhood."
While everyone waits for a "breakthrough" commitment by a company like CIBC or KPMG, major lease renewals - such as re-ups by AIG and Cahill, Gordon & Reindel for 800,000 square feet at 80 Pine St. - laugh off predictions of future flight.
Meanwhile, the latest data from Insignia/ESG shows slight improvement in the downtown availability rate, which nudged down from 14.6 percent to 14.5 percent in October. The next survey ought to show more improvement, as it will take into account two big, recent new commitments - Thacher Proffitt & Wood's 126,000 square-foot sublease at 2 World Financial Center, and the Health & Hospitals Corp.'s lease for 140,000 square feet at 160 Water St.
Of 11.9 million square feet Insignia found "available," out of a total inventory of 82.4 million square feet, sublease space accounts for 4.31 million.
That means the downtown vacancy rate - space on which no rent is being paid - is barely more than 9 percent.
* Please send e-mail to:
scuozzo@nypost.com
There are two ways to view downtown: in terms of its obvious weakness, or in terms of its less obvious stability.
Preferring to take the latter view is Scott Singer, executive vice-president of mortgage brokers Singer & Bassuk, which has arranged more than $500 million in financing for downtown since 9/11.
"There was a fear for a significant period after 9/11 that lenders would redline downtown," Singer said. "Clearly, we've shown that isn't the case."
Prior to the terrorist attack, Singer & Bassuk had arranged financing for about 65 percent of Lower Manhattan's residential conversions.
Since then, among other transactions, it has arranged a $190 refinancing of 1 Seaport Plaza and a $58 million first mortgage on 52 Broadway, new home of the United Federation of Teachers.
"At the end of 2001," Singer said, "you had the worst possible thing: uncertainty. No one knew if anyone would sign leases again.
"Now it's clear that things have stabilized. We lost a lot of tenants and [have] given a lot of space back. But it's all at a measurable level and people are not fleeing the neighborhood."
While everyone waits for a "breakthrough" commitment by a company like CIBC or KPMG, major lease renewals - such as re-ups by AIG and Cahill, Gordon & Reindel for 800,000 square feet at 80 Pine St. - laugh off predictions of future flight.
Meanwhile, the latest data from Insignia/ESG shows slight improvement in the downtown availability rate, which nudged down from 14.6 percent to 14.5 percent in October. The next survey ought to show more improvement, as it will take into account two big, recent new commitments - Thacher Proffitt & Wood's 126,000 square-foot sublease at 2 World Financial Center, and the Health & Hospitals Corp.'s lease for 140,000 square feet at 160 Water St.
Of 11.9 million square feet Insignia found "available," out of a total inventory of 82.4 million square feet, sublease space accounts for 4.31 million.
That means the downtown vacancy rate - space on which no rent is being paid - is barely more than 9 percent.
* Please send e-mail to:
scuozzo@nypost.com