Stuy Town debt holders considering foreclosure

Tishman Speyer and BlackRock have 10 days to make a payment on their troubled Stuyvesant Town and Cooper Village complex before lenders step in to foreclose, sources told Bloomberg. The owners missed a $16.1 million payment on the property last week, putting them in technical default, and as a result, a group of senior mezzanine debt holders, led by Winthrop Realty Trust, said in a letter that it would pursue “rights and remedies,” including a possible foreclosure sale. The group holds $300 million in debt on the property and could act within 90 to 180 days. Tishman Speyer and BlackRock Realty purchased Stuyvesant Town, the city’s largest apartment complex with 11,200 units, for $5.4 billion in 2006, investing $112.5 million each. It was valued at just $1.8 billion in October. The $3 billion mortgage from Wachovia Bank was packaged and sold as securities to several investors including Fannie Mae, Freddie Mac and the Government of Singapore Investment Corporation, which has already reported losses in the aftermath of last week’s default. [Bloomberg]