The sun. [volume] (New York [N.Y.]) 1833-1916, 1907-11-03
The REAL ESTATE MARKET
TRhDIN6 OFF HIGH PRICED
MODERN BUILDINGS.

New aHd Costly CONSIDERATIONS Are lBeinx
Taken Over by Wealthy Investors I'm
Return for AntlquRted Holdings and q
MOdIcum OT Cash-MOrtKagc B1yIng.
II would be difficult to make out any
positive tendencies in last weeks brokerage
dealings. During the larger part OR the
week trading wa quite as limited as il had
been Immediately before the Wall Street
panic. On Friday and Saturday. however,
there was a perceptible increase in the
number Of private sales.
Several Of the transactions reported on
Friday we're Of the kind requiring big capi-
tai. or at any rate involving high priced
realty. A Broadway corner at Long Acre
Square was leased at q net rental of about
100000 a year as a site for a theatre and
office building. Options were secured on
a big plot on Washington Heights by an
amusement company and a builder traded
Of two new loft buildings for a Broadway
corner in tho Wholesale district.
These transactions, reported ON Friday,
we're supplemented yesterday by the sale
u a valuable ten acre estate at Riverdale
and the exchange. Of a Broadway loft
building for property on Greenwich street.
In addition to the more or less conspicuous
deals Just enumerated a number of high
class apartment, houses changed ownership
IN the course of the week.
specifically the showing as regards
expensive realty was far better than IL has
been in a long time. Meanwhile the notable
deals were az a rule Of the sort which one
expects to see in a disturbed money market.
when professional operators, unable to
turn their entire equity in modern buildings
into cash. are willing to take other realty
N part payment for H.. Still the increase
in big trades noted last week. whatever
alse 1t may imply. is an assurance that
expensive holdings are passing into the
hands of wealthy investors in a name
calculated TO strengthen the realty market.
As regards the ordinary III Of property
there were no Developments Of any pa
sequence. The increase OF dealing IN fats
and toward the close of the
week was too slight 30 ave any special
significance.
How ever, ths opinion " as freely expressed
by brokers that dealing in such property
Il likely TO grow an volume in proportion
as the monetary situation eases up, as
many owners are anxious ID sell because
" demands 10y savings banks for higher
rates ~ interest on overdue mortgages. In
many cases, too, the banks are calling for a
reduction in the principal OF such mort
cages.
IL seems TO be generally accepted now
that while the supply OF mortgage loan
money will DO ample soon after tho turn
u the year interest rates will not 60 down
" the level of three TO five years ago, when
most Of the mortgages expiring at present
"erH made. At any rate, the banks arc
generally demanding 5 and 81 per cent. in
the "ase Of loans that require renewal and
mat have been paying : and IA per cent.
Meanwhile the high current interest
r1tes ar" having the very desirable effect
u attracting new capital. All the title
companies report a big sale Of guaranteed
mortgages. The demand for such seCuri-
lies which developed suddenly while the
rin ou the banks was in progress has grown
~eonsidntiy more important during the
ASs' w-eh Another fact which points In
~" sane direction is the exceptionally
arg number OF second mortgages that
are being recorded. Most of these are
ma1" tv private individuals. and are for
sinGl amounts. but in the aggregate they
Iorir q very substantial addition 20 the sums
invested through the title companies.