Stuy Town turned over to creditors

New York /
Jan.January 25, 2010 08:59 AM

Tishman Speyer and BlackRock Realty, the owners of Stuyvesant Town and Peter Cooper Village, are turning the 110-building complex over to creditors in a deed-in-lieu of foreclosure, the companies announced this morning. The partners went into default on the property after missing a $16.1 million debt payment earlier this month. The complex was purchased for $5.4 billion in 2006 in the most expensive single residential sale ever in the country and it has $4.4 billion in debt. The property is now worth an estimated $1.8 billion. Creditors had been threatening to move forward with foreclosure proceedings in recent weeks and to remove Tishman Speyer as property manager. “We make this decision as we feel a battle over the property or a contested bankruptcy proceeding is not in the long-term interest of the property, its residents, our partnership or the city,” Tishman and BlackRock said in a joint statement to the media. “Tishman Speyer would not consider a long-term management contract to
continue operating the property that does not involve ownership. Without a restructuring that would keep our ownership group as part of the equity, we felt it best that the new owners install a new management team.” Tishman Speyer itself invested only $112 million in the property; damage to the company’s reputation is likely to be more palpable in the aftermath of the soured deal. [WSJ]


Related Articles

arrow_forward_ios
Blackstone CEO Steven Schwartzman and Stuyvesant Town (Credit: Getty Images)
After authorities vowed review of Stuy Town deal, Blackstone changes course on vacancies
After authorities vowed review of Stuy Town deal, Blackstone changes course on vacancies
Noel Quinn, chief executive, HSBC Group; renderings of 66 Hudson Blvd (HSBC, Tishman Speyer)
HSBC eyeing move to Tishman Speyer’s Spiral
HSBC eyeing move to Tishman Speyer’s Spiral
Dan Garodnick (Getty, iStock)
Dan Garodnick to head City Planning
Dan Garodnick to head City Planning
Morgan Stanley inks massive lease at Fisher Brothers’ Park Avenue Plaza
Morgan Stanley inks massive lease at Fisher Brothers’ Park Avenue Plaza
Morgan Stanley inks massive lease at Fisher Brothers’ Park Avenue Plaza
Rob Speyer (President, Chief Executive Officer, Tishman Speyer) & Neil Shekhter (Founder, Chief Executive Officer, NMS Properties) (iStock, Tishman Speyer, NMS Properties, Illustration by Kevin Cifuentes for The Real Deal)
Tishman Speyer to build 620 units on Santa Monica sites
Tishman Speyer to build 620 units on Santa Monica sites
Tishman Speyer buys pair of industrial assets in diversification play
Tishman Speyer buys pair of industrial assets in diversification play
Tishman Speyer buys pair of industrial assets in diversification play
Tishman Speyer selling Rockefeller Center Christmas tree (as an NFT)
Tishman Speyer selling Rockefeller Center Christmas tree (as an NFT)
Tishman Speyer selling Rockefeller Center Christmas tree (as an NFT)
Tishman Speyer to buy major Santa Monica resi portfolio
Tishman Speyer to buy major Santa Monica resi portfolio
Tishman Speyer to buy major Santa Monica resi portfolio
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...