Stuy Town now officially worth less than its loan balance

New York /
Nov.November 05, 2010 09:00 AM

Stuyvesant Town and Peter Cooper Village

The first appraisal of Stuyvesant Town and Peter Cooper Village since the complex went into default in January is in, and investors won’t be happy with the result: $2.8 billion. Tishman Speyer and BlockRock bought the 11-acre property for $5.6 billion in 2006, using a $3 billion first mortgage and $1.6 billion in mezzanine debt. According to the Wall Street Journal, special servicer CW Capital, which took control of the complex last month after reaching a buyout deal for some $300 million in mezzanine debt from a group of junior lenders led by hedge funder Bill Ackman, is likely to cut down on interest payments to subordinate CMBS debt holders now that the property is worth less than the amount owed on the loan. Prior to the new valuation, CW had been directing advance interest payments to all of Stuyvesant Town’s many investors with the assumption that they would eventually be recovered. [WSJ]

 

Related Articles

arrow_forward_ios
Blackstone's Jonathan Gray, Fortress Investment's Peter Briger, Harry Macklowe and Donald Trump (Blackstone, Long Arc Capital, Getty Images)
The Fortress real estate hall of fame
The Fortress real estate hall of fame
Larry Ackman (Getty)
Larry Ackman, former Ackman-Ziff CEO, dies
Larry Ackman, former Ackman-Ziff CEO, dies
Bill Ackman and a rendering of the glass penthouse at 6-16 West 77th Street (Getty, Foster + Partners)
Bill Ackman getting his glass penthouse … mostly
Bill Ackman getting his glass penthouse … mostly
Bill Ackman and his wife, Neri Oxman. (Getty Images)
High Society comes out in support of billionaire’s glass penthouse
High Society comes out in support of billionaire’s glass penthouse
Pershing Square Capital Management CEO Bill Ackman and 787 11th Avenue (Getty, Rafael Viñoly Architects)
Ackman wants $630M for Hell’s Kitchen office building
Ackman wants $630M for Hell’s Kitchen office building
Airbnb's Brian Chesky and Bill Ackman (Getty)
Bill Ackman on Airbnb: “I wouldn’t use the word rebuff”
Bill Ackman on Airbnb: “I wouldn’t use the word rebuff”
Keith Meister and Bill Ackman (Credit: Meister by Patrick McMullan/Patrick McMullan via Getty Images, Ackman by Sylvain Gaboury/Patrick McMullan via Getty Images, iStock)
Activist investors dive in as real estate stocks tank
Activist investors dive in as real estate stocks tank
Bill Ackman, LeBron James, and Arnold Schwarzenegger with 787 11th Avenue (Credit: Google Maps and Getty Images)
Celebrity property group caught in $11M construction dispute
Celebrity property group caught in $11M construction dispute
arrow_forward_ios

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

Loading...