COMMERCIAL REAL ESTATE SPECIAL SECTION BUYING POWER _ Big-ticket sales prices require big down payments
January 19, 2012
By: Lois Weiss

The large commercial mortgage market has become so dysfunctional that most Class A office sales now require a large cash component - from $200 million to as much as $600 million-in order to proceed...

... "Prices have now recovered to a level where there has been a lot of elective selling," says Woody Heller, group head of the capital markets group at Studley, which just represented the Rose family in the sale of their 50 percent interest in One Battery Park Plaza to the Rudins. "The larger transactions are still waiting for the debt markets to recover."...

... "To get $900 million in construction financing for 1 Bryant Park, we had to get five lenders," he says. "Today we are talking about each bank putting in $50 to $75 million, so to get $200 million to $300 million we need five to six banks sitting down with us. No one wants to take that much risk."