A&E Real Estate is facing difficulties with a $600 million multifamily loan tied to rent-regulated buildings. Although A&E has kept up with payments, the loan became delinquent after the company chose not to extend it by purchasing a costly rate cap. The portfolio, which is 85% rent-regulated, has suffered from decreased valuations, with loan-to-value ratios rising to 200%. The firm’s situation reflects broader struggles in the rent-regulated segment of the CMBS market, as rent increases fail to keep pace with rising expenses under New York’s 2019 rent law.
A&E Real Estate
