After authorities vowed review of Stuy Town deal, Blackstone changes course on vacancies
Tishman Speyer is expected to miss a $16 million loan payment on Stuyvesant Town and Peter Cooper Village today, putting the company in technical default on its mortgage after months of speculation that such a situation was imminent. Executives at Tishman, which purchased the 110-building complex with BlackRock Realty in 2006 for a stunning $5.4 billion, told the New York Times that the partners would not be able to pay the entire amount due. Since November, Tishman Speyer and BlackRock have been in negotiations to restructure $3 billion in debt on the properties, now worth just $1.9 billion, according to the most recent appraisal. In October, amid speculation that reserves for the complex were fast depleting, the state’s highest court ruled that Tishman Speyer had illegally deregulated rents for roughly 4,400 apartments because it had been receiving a city tax abatement for renovations at the time. The ruling meant that the owners could owe $200 million in rent overcharges to those tenants. [NYT]
