Foreign banks are beating out U.S. lenders on originations for commercial properties in New York City in the first half of this year ‒ a trend shift that began in the first quarter and continued in the second, CrediFi found in its latest report on NYC lending trends.
Foreign lenders were responsible for 34% of originations by the top 20 loan originators for NYC commercial properties in Q2, a slightly higher share than in the first quarter.
But the leading European originator is not the one that probably jumps to mind first.
Read the full Q2 2018 report on CRE finance in New York City.
While Deutsche Bank was the biggest loan originator for NYC commercial properties in 2017, it was French bank Natixis that topped the list in the second quarter of this year. Deutsche Bank was also in the top 10, along with Aareal Bank, another German lender, and Spain’s Santander.
However, the share of originations by national lenders ‒ which had previously been the leading lender category in the Big Apple ‒ recovered substantially over the previous quarter, due in part to Wells Fargo’s return to higher levels of CRE origination in Q2.
Wells Fargo’s origination levels in New York City dropped in the first quarter as the bank was dealing with the fallout of multiple misconduct scandals and a Federal Reserve asset cap. Q2 origination more than doubled quarter-over-quarter, but was about half that of the parallel quarter last year.
Meanwhile, New York Community Bank broke through the former SIFI ceiling following the rollback of Dodd-Frank reforms that had set a $50 billion threshold for designation as a systemically important financial institution. NYCB reported at the end of Q2 that its total assets increased to $50.5 billion, with continued growth in its loan portfolio.
The CrediFi report is based on an analysis of $235 billion in financing from Q1 2016 to Q2 2018. It determines the top originators of NYC commercial real estate loans in Q2 and analyzes lending trends in the market.
Find out how the multifamily, retail and office markets are doing in New York City. Read our full Q2 report on commercial real estate financing in NYC.