Stuy Town turned over to creditors

TRD 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

50 Rockefeller Plaza and Katten's Chris DiAngelo (Credit: Google and Katten)

Katten law firm moving to Rockefeller Center

From left: Jonathan Gray and Steve Schwarzman with Stuyvesant Town

Behind Blackstone’s “capital strike”

Clockwise from the top left: Jackson Park at 28-40 Jackson Avenue, 240 Willoughby Street in Fort Greene, 664 Pacific Street in Brooklyn, and 247 Metropolitan Avenue in Williamsburg (Credit: StreetEasy, Google Maps, Pacific Park Brooklyn, The Pod Hotel)

These were the top 10 outer-borough loans last month

October Issue is Live

The Real Deal‘s October issue is now available to subscribers!

Jackson Park at 28-40 Jackson Avenue and Tishman Speyer's Rob Speyer (Credit: StreetEasy and Tishman Speyer)

Tishman Speyer locks in $1B in financing for Jackson Park

Blackstone CEO Stephen Schwarzman and Stuyvesant Town (Credit: Getty Images)

Authorities will conduct review of Stuy Town deal in light of Blackstone’s vacancy strategy

Blackstone CEO Stephen Schwarzman and Stuyvesant Town (Credit: Getty Images and Wikipedia)

Blackstone “warehousing” rent-stabilized apartments at Stuy Town

arrow_forward_ios
Loading...