How do you asset manage a new york multifamily skyscraper?
If you have a skyscraper in new york of super luxurious class a multifamily and you go to 60% occupancy because of something like covid and the property is hemorrhaging money for a year or two how does one remedy this situation>
Concessions, strong incentives for leasing team, smart capex, reposition amenities if needed
Insure it for more than book value and burn it down.
If you think the property has some viability in the near term, take down more leverage or sell some of the equity for a reduced price and hope it's enough liquidity to get you out the other side.
Otherwise, hand back the keys
Concessions to lease up the building. Three months free on a 15 month lease wasn’t uncommon coming out of Covid. If there is a fundamental shift away from the neighborhood maybe a different story. Rents overall still look very strong.
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