There's perhaps no more accurate indicator of the state of bank lending than the stance of banks in the Northeast U.S., a region replete with high median incomes and a disproportionate share of the nation's wealth. Three years ago, in July 2006, banks were willing to make the following deals:
- $2.5 million variable-rate loan, with up to 100% financing for 3 investment partners, for a 10-unit speculative condominium complex in Fairfield County, Connecticut.
- $5 million, interest-only loan, with up to 90% financing for 4 investment partners for a small shopping center complex in Westchester County, N.Y.
- $10 million, fixed-rate loan, with up to 90% financing for the conversion of a rental apartment building to condo status, including funding for the construction of a below-ground swimming pool, fitness center, sauna, mini-spa and locker room in Westchester County, N.Y.
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Financial Editor Joseph Lazzaro is based in New York.
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Reader Comments (Page 1 of 1)
7-24-2009 @ 8:37PM
ij70 said...
The banks are not landing because they are afraid to be left without liquid funds, they are afraid to be left without liquid funds because they are sitting on a lot of overpriced properties that are not selling, the properties are not selling because they are overpriced. Me thinks there is still liquidity crisis :-)