🔥5,000 NYC Apartments Hit Auction Block
Tax law lapse creates massive distressed buying opportunity
New York’s housing market is cracking under pressure as over 5,000 rent-stabilized apartments just hit the auction block after a tax-relief law lapsed, leaving nonprofit landlords unable to cover their mortgages.
This distress is spreading beyond residential into commercial real estate, where office REIT OPIT is teetering on bankruptcy with only single-digit millions in cash while facing over $300 million in loan maturities.
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Meanwhile, San Francisco’s Veritas Properties just defaulted on a massive $652 million development loan, triggering foreclosure proceedings that will likely result in a fire sale of prime real estate.
The trend is playing out nationwide, as evidenced by a Phoenix apartment complex that recently sold for just $36 million after lender foreclosure, signaling that banks are aggressively offloading distressed assets to clean their books.
In this edition of the AltReports:
🔥 5,000 NYC rent-stabilized units hit auction block
📉 Office REIT OPIT faces $300M debt bomb with single-digit cash
🏗️ Veritas defaults on $652M SF development loan
💸 Phoenix apartments sell for $36M after lender foreclosure
🏠 Housing market flips from seller’s paradise to buyer’s buffet
Video of the Week: I Bought a house at a foreclosure auction but squatter wont leave
Chart of the Week: Core CRE (Office, Retail, Industrial, Hotel) Performance
Podcast of the Week: How to Originate Land Notes That Sell for Maximum Value
5,000+ NYC Rent-Stabilized Apartments Hit the Auction Block
A lapse in NYC’s tax-relief law just threw over 5,000 rent-stabilized apartments into foreclosure and onto the auction block.
Nonprofit landlords can’t cover their mortgages without the break, so a flood of cheap, distressed buildings is hitting the market.
💡 Investor Takeaway: Target buildings with 10-50 units in Bronx/Queens with J-51 tax benefit expirations, and budget 18-24 months for tenant buyouts at $25-50K per unit
Office REIT on Deathwatch as Debt Clock Ticks Down
OPIT’s cash balance has shriveled to single-digit millions while more than $300 million of loans come due through Q3, dragging the REIT to the brink of bankruptcy.
Refinancing is dead in the water and asset sales won’t cover the gap, so lenders are circling and default notices are next.
💡 Investor Takeaway: Monitor OPIT’s 10-Q filings for asset-specific loan maturity dates
SF Veritas Faces Foreclosure on $652M Loan
Veritas Properties just defaulted on a massive $652 million loan for its San Francisco development, triggering a foreclosure filing.
Lenders are gearing up to seize and sell the project at a deep discount, turning a landmark into a fire sale.
💡 Investor Takeaway: Get your capital lined up now—the foreclosure auction is your chance for a major discount on a core-market trophy.
Fire-Sale Phoenix Apartments Fetch $36M After Lender Foreclosure
A lender-offloaded 494-unit Phoenix apartment community sold for just $36M after the borrower defaulted.
That sale tells us banks are flipping underperforming assets at deep discounts to clean up their books.
💡 Investor Takeaway: Focus on 2019-2022 vintage properties in Phoenix, Austin, and Tampa trading below $75K per unit with in-place NOI above 5% cap rates
2025 Housing Market Implodes Into Buyers’ Paradise
The housing market has flipped from hot seller’s paradise to buyer’s buffet with inventory surging 25% and prices slipping year-over-year.
Mortgage applications are crashing, lenders are pulling back, and foreclosure filings are ticking up as overstretched homeowners lose ground.
💡 Investor Takeaway: Target pre-foreclosure homes priced $300-600K with equity cushions of 15%+