JUNE 6, 2010
SNATCHING BUILDINGS NEW WAY ISN'T EASY
- Crain's New York Business
Hidrock succeeds in buying 960 Sixth Avenue "the new way"
Late last month, Hidrock Realty Inc. took control of a 16-story office building at 960 Sixth Ave. the new way - buying up a distressed mortgage at a discount and then foreclosing the borrower.
It may sound simple, but it's not. In fact, hundreds of real estate investors are trying to duplicate the success achieved by Hidrock and a few others but are struggling to overcome a series of unexpectedly high barriers.
Contrary to widespread forecasts, few distressed mortgages have come up for sale, and the limited supply has driven up prices. Additionally, there is very little public information on the properties that the mortgages are financing, and foreclosing an owner can mean years of expensive legal wrangling.
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