$3B Stuy Town loan reportedly given to special servicer

Tishman Speyer Properties and BlackRock Realty, owners of the Stuyvesant Town and Peter Cooper Village complex, are finding fewer options to avoid defaulting on their $3 billion mortgage and will likely attempt to restructure their debt or sell the collection of apartment buildings, according to Crain’s. While there’s no word yet on when the development’s owners will make a move on their investment, a Tishman spokesperson said that the group has requested that the loan be handed off to a special servicer to help restructure its debt. The owners spent a record $5.4 billion for the properties in 2006, hoping to deregulate the long-time regulated units. But, after tenants won a lawsuit last month to block that initiative, Tishman and BlackRock’s financial woes continued to mount. According to Fitch Rating, the complex doesn’t produce enough revenue for the owners to meet their debt obligations.