Foreclosures "surging" in Brooklyn?

We have definitely noticed an uptick in Brooklyn foreclosures from the 2 lenders we currently represent.
Example: https://streeteasy.com/sale/1400201

When are the multi-family rent stabilized foreclosures coming? If anyone got 70 LTV non recourse loan (typical LTV may be less), perhaps not worth paying the mortgage.

I think a non-insignificant amount will hold on until the sabre rattling about having the new statute overturned is over.

It will we interesting to see what happens with Stuyvesant Town/Peter Cooper Village, which already crapped out once and had to be bailed out. Just losing preferential rent is probably going to cost them a couple of million dollars a month to start, and they are CONSTANTLY renovating units so the IAI cap is going to kill them.

https://www.nytimes.com/2010/02/16/nyregion/16stuytown.html
https://www.perenews.com/stuy-town-foreclosure-battle-heats-up-after-hitting-ny-supreme-court/

https://therealdeal.com/2019/07/12/rent-regulation-laws-prompt-blackstone-to-halt-improvements-at-stuy-town/

I calculated the cap rate for individual apt improvement allowance without accounting for the lost rent and administrative cost of say 2-4 weeks eqt while the apartment is being renovated with $15k cap. Comes to appx 6 percent. Realistically 5 to 5.25 percent accounting for lost rent and admin cost vs 10 percent plus cap rate before the law change. Blackstone will have to take a mark down.

Stache,
That article is propaganda - they started renovation work last week on an apartment on the floor above me and are finishing renovation on an apartment two floors below me which was started before the change. It will be interesting to see what they do with the unit 2 floors below because I think it had been a long term tenant.
What will probably stop is the recent practice of taking renovated 1 BR units in Peter Cooper and turning them into 2 BR units (this year on my floor they took a 1br which had recently been renovated - all new electric, marble bath, new kitchen with granite counter, and re-did it).

300,
There's no way Blackstone is getting even their lowest level (which they call "classic") done for $15k.

I don't know if I would have started the listing description off as "stunning". (;

30, I just threw it into the mix.