Monday, January 25, 2010
When you buy near the top of the market
You will probably crash and burn when the market drops to current levels. That is what happened to Stuyvesant Town in NYC.
The owners of Stuyvesant Town and Peter Cooper Village, the iconic middle-class housing complexes overlooking the East River in Manhattan, have decided to turn over the properties to creditors, officials said Monday morning.Oh goody, a massive commercial real estate package is underwater so the business partners walk away from it! Just like some folks have been recommending to homeowners.
The decision by Tishman Speyer Properties and BlackRock Realty comes four years after the $5.4 billion purchase of the complexes’ 110 buildings and 11,227 apartments in what was the most expensive real estate deal of its kind in American history.
This month, the partnership headed by Tishman Speyer defaulted on $3 billion in debt on the properties, and in the last few days secondary lenders have been calling to replace the partnership.
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