Hedge fund losses drive Manhattan real estate slowdown
By Lawrence Delevingne
Tue Nov 8, 2011
Large deals by Man Group and Peter Muller’s PDT Partners have been the exception in recent months.
The number of Manhattan real estate deals involving hedge funds
fell significantly in October from the previous year, with the
industry's recent losses leading brokers to worry that 2011
could mark the first sizeable drop in activity since the
||The new home of Man Group: 452 Fifth
The full affect of
poor performance in the third quarter has yet to be felt,
but real estate professionals say hedge funds are signing fewer
of the large and long-term leases, mostly in midtown Manhattan,
that fuel the market for high-end real estate, and that the
situation could worsen by yearend.
There were just 17 deals in October, according to data from
CB Richard Ellis, compared with 38 in September and 30 in
October 2010. Many of the recent deals involved smaller funds
and office sizes; many weren't hedge funds. October was the
lowest month for financial...
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