New York City’s real-estate market had already been hurt by the general economic downturn when Bernie Madoff came along. Apparently in addition to losing tons of money with the Ponzi schemer, many Madoff investors in New York lost their chance to own new, luxury apartments. They can no longer make the cash down payments required by many high-end buildings on Park Avenue and Fifth Avenue.
The Real Deal: On Fox Business News, Dolly Lenz, a vice chairman at Prudential Douglas Elliman, discussed how the Bernard Madoff scandal is affecting New York real estate. Lenz said Elliman has already lost six deals because buyers who lost money with Madoff no longer have cash for down payments, and she expects more deals will fall through.
Meanwhile, investors in Manhattan and Florida are desperately trying to sell their homes.
Lenz said that in New York and Boca Raton, Fla., sellers whose deals have gone belly up are now looking to unload their homes to anyone who can pay in cash.
An extended clip of Lenz’s appearance on Fox Business is below.