Construction lending in New York City fell 14 percent during the 12 months ending in August, falling from about $18.2 billion in the prior 12-month period to $15.7 billion in the 12 months from September 2022 to August 2023, according to a PincusCo analysis of construction loans.
While that was a significant drop, it was far less of a decline than overall commercial lending in New York City, which declined by nearly 50 percent in the 12-month period ending in August 2023. That decline was precipitated by high interest rates and a sharp decline in investment sales.
The top three lenders over the past 12 months by dollar volume were the New York City Housing Development Corporation, Wells Fargo, and Valley National Bank, while the top three lender by the number of loans were Popular Bank, Ponce Bank and S3 Capital.
A number of previously active lenders did not provide any loans over the past 12 months, including Madison Realty Capital, which provided six loans totaling $657 million between September 2021 and August 2022.
The top loans included $575 million in additional construction financing for SL Green Realty’s renovation and expansion of the office building at 1 Madison Avenue and $425 million M&T Bank provided to BLDG Management for an 818-unit project in Long Island City.
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