Stuy Town loan default confirmed

January 08, 2010 03:02PM

Tishman Speyer and BlackRock, the owners of Stuyvesant Town and Peter Cooper Village, will not make today’s scheduled $16 million mortgage payment to senior lenders for the East Side apartment complex, the companies have confirmed in a statement.

Reports surfaced this morning that a technical default on the loan was imminent, though the news was hardly surprising to the city’s real estate community, which has been closely watching the beleaguered property in recent months. In November, Tishman Speyer and BlackRock entered negotiations with special servicer CWCapital to restructure $3 billion in debt for Stuyvesant Town, and speculation abounded that its reserves could be depleted before the close of 2009.

The partners purchased the 110-building complex in 2006 for $5.4 billion; the most recent appraisal valued it at just $1.9 billion.

“Today’s announcement has no immediate impact on tenant services or the day-to-day operations of the community,” the companies said in the statement. Furthermore, the statement said, “the debt for Stuyvesant and Peter Cooper Village is secured exclusively by the property and is not cross-collateralized with any others. It does not impact, nor is it impacted by, any other properties in which Tishman Speyer or BlackRock may be invested.” TRD

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