"Capital is blind," said David W. Levinson, a founder of L & L Holding Company, a real estate firm that controls 11 Manhattan buildings. "It will go wherever it can for a return. That's it in a nutshell."
It is an infuriating pattern for the New York City's real estate aristocracy, like the Durst family,
which has been measured in its borrowing and has never defaulted on a loan. Yet,
Douglas Durst said, "That has not given us any advantage as we go through each
financial cycle in which the bankers who made bad loans are let go, but the defaulting
borrowers are waiting for the new team of bankers to start the process over again."
Real Estate Developers Prosper Despite Defaults
By CHARLES V. BAGLI
Published: January 1, 2011
Unlike ordinary homeowners, developers who suffer costly losses tend to be forgiven by lenders and investors.