Y2k panic already hits Manhatten real estate dealsgreenspun.com : LUSENET : TimeBomb 2000 (Y2000) : One Thread
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With Carl Limbacher and NewsMax.com Staff
For the story behind the story...
Wednesday October 6, 7:30 AM
Y2K Panic Already Hits Manhattan Real Estate Deals
The Big Apple has been in the middle of a real estate boom of sorts, fueled by, among other things, Wall Street.
Y2K may put the brakes on the party, at least temporarily.
Crains New York Business -- the respected business publication for the city -- reports this week that major commercial real estate deals will be suspended next month.
"Many major real estate lenders plan to stop doing business in November and December because they worry they will not be able to package real estate loans and sell them on Wall Street."
The root of the problem, Crains says, is that "purchasers of these securities have made it clear they dont intend to buy at the end of the year because theyre uncomfortable about the uncertainties surrounding year 2000 computer problems."
The major real estate deal makers fear that investors will want to sit on the sidelines, rather than invest in securities, to keep liquidity during the period leading up to the Y2K rollover. New York firms are trying to complete all major transactions by Oct. 15, and an avalanche of $7 billion worth of real estate securities are currently hitting the bond market.
-- Homer Beanfang (Bats@inbellfry.com), October 07, 1999