New York real estate giant Butler Real Estate Group, which has sold off properties around the world, is being singled out by the Federal Reserve for being aggressive about its sales of homes to foreign buyers.
The real estate arm of the U.S. Federal Reserve has said it is “very concerned” about Butler’s aggressive sales practices, but that it is doing what it can to combat them.
The New York Fed said it has been working with Butler to help the company respond to recent sales trends and its efforts to limit foreign purchases in the city, which it says has been a problem for the city’s housing market.
Butler real-estate spokesman Kevin Baker said in a statement that the Fed’s comments are “completely false” and that the company “has done a tremendous amount to combat the practice of foreign buyers from China and elsewhere.”
He said Butler has taken steps to reduce foreign buyers in the past year by about 30 percent, and has increased its transparency on how it uses data and information from its brokerages to limit its purchases.
Baker said the firm “is actively engaging with our brokerages and partners to better understand how foreign buyers are purchasing in the City and is also working to help local communities to develop strategies to reduce the supply of properties.”
The New Jersey-based real estate company has sold homes to Chinese buyers in recent years, and a few years ago bought a house in Manhattan’s Upper West Side for $3.3 million.