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Article: $3B Stuy-Town mortgage goes to special servicer.
- Article from:
- Crain's New York Business
- Article date:
- November 9, 2009
CopyrightCOPYRIGHT 2009 Crain Communications, Inc. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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Byline: Theresa Agovino
The $3 billion mortgage that financed the purchase of Stuyvesant Town-Peter Cooper Village has been transferred to special servicing firm, a signal that the borrowers are likely to default.
Tishman Speyer Properties and BlackRock Realty paid a record $5.4 billion for the sprawling rent-regulated apartment complex in 2006. They hoped to quickly deregulate apartments and raise rents to cover debt service requirements, but a combination of lawsuits and the recession stymied their plans. Fitch Rating said the complex doesn't generate enough cash to cover its debt service requirements, and the $400 million reserve fund set aside as a ...