2022 saw $1.8B in NYC note sales amid interest rate uncertainty
Investors bought $1.8 billion in commercial note sales in 2022 covering New York City properties, according to a PincusCo Media analysis of city property records.
This is a preliminary analysis and has not been vetted with the firms. We excluded banks as note buyers from the analysis.
Interest rates rose rapidly in 2022, as lenders responded to the Federal Reserve raising interest rates throughout the year.
The data covers loans with original principals of $2 million and up that were recorded in New York City property records. The data is likely incomplete as some note purchases are not recorded until months after the sale in order to keep the transaction confidential.
Overall, the number of note sales peaked in the first quarter, when about a third of the sales for the entire year were executed.
Manhattan was the most active location for the note sales, with about $1.3 billion or 72 percent of the total dollar volume of deals.
The top note buyer by dollar amount was MSD Partners, which acquired one note valued at $174 million, secured by Soho Properties mixed-use condo tower at 45 Park Place in Lower Manhattan. That was followed by Yellowstone Real Estate Investments acquisition of a $170 million note secured by Capstone Equities Midtown Maxwell Hotel.
The next most active buyer by dollar amount was also the most active by the number of deals, Maverick Real Estate Partners. The firm bought at least eight loans, according to the latest PincusCo count, valued at a total of $139 million.
The most active by the number of deals were Maverick, followed by Hirshmark Capital, and then a tie for those with four purchases between Beltway Capital Management, O’Brien-Staley Partners and Fairview Partners Investment Management.
The most active note sellers by dollar volume included Investors Bank with 15 sales totaling $177.8 million, followed by lenders that each sold one large loan, Malayan Banking Berhad, LoanCore Capital and DW Partners.
The lenders that were the most active by the number of deals included Investors Bank, Webster Bank, Signature Bank and Santander Bank.
