The Stuyvesant Town Report: Stuy Town/Peter Cooper Village

Sunday, August 16, 2009

Stuy Town/Peter Cooper Village - Next to Go?

So asks the business info/analysis site Crain's New York. A new online article on Crain's has more on what's going on in New York, with foreclosures on properties providing opportunities for investment groups (including BlackRock!) to "swoop in" and gobble up these properties.

In Manhattan alone, there are 130 troubled properties worth $7.5 billion, according to Real Capital Analytics. With credit markets still frozen shut, many owners will be unable to refinance loans falling due and will have no choice but to default.

Eastdil Secured, for example, is currently marketing a $100 million debt position owned by insurer The Hartford that was used in 2006 to help finance the $5.4 billion purchase of Stuyvesant Town/Peter Cooper Village by Tishman Speyer and BlackRock. The owners had hoped to deregulate a substantial number of units in the sprawling rent-regulated complex and use the increased cash flow to pare down debt. That didn't happen, and the complex has been rapidly burning through rainy-day reserve funds. A default is possible as early as this fall, sources say.

Things may get very messy, however, because, as the article reasons, lawsuits are possible among a property's initial lenders. "Some lenders' positions will be completely wiped out in the event of a foreclosure," notes Crain's.

Somehow, I think, Stuyvesant Town and Peter Cooper Village will be saved from default, at least if papa Jerry Speyer can pull strings to help son Rob out of the embarrassment of such a downfall.

2 comments:

Anonymous said...: Senior securitized loan is worth $3bln. Mezz loans add up to $1.5bln (including Calpers and Calsters, I think). Addtl financing of $1.5bln bought this property (and escrowed debt service and cap improvement) for $6.0bln. Servicer for senior loan whispered a few months ago that senior loan will continue to pat interest (meaning servicer will pay interest rather than allow default in case TS fails to pay debt service on senior loan).

The question is this: Is TS willing to raise more money (and can they) for a property that is valued at less than the total of the senior loan and the mezz loan positions? (meaning less than $4.5billion). Take into account that next month's court case will have an impact on valuation of the property. If Appeals affirms lower court's decision, Value will be significantly reduce due to landlord's inability to de-stabilize apartments (in fact returning apartments to stabilization). Future growth of rents will be significantly reduced (in fact rent wil barely cover senior loan debt service).

I cannot see how TS would see any return on their investment. And I do this for a living!

So TS defaults. Court appoints a third party manager until mezz bankruptcy is completed. One of the mezz lenders will probably receive the property. And i believe two of the mezz lenders are Calpers and Calsters, the California pension funds (in for about $1.0bln of the $1.5bln mezz piece).

So TS may default. Property is then possibly owned by a pension fund that manages working class and union pension funds. Is that such a bad thing?

I think we can party in the Oval if that happens.; August 18, 2009 at 12:09 PM
Anonymous said...: "So TS may default. Property is then possibly owned by a pension fund that manages working class and union pension funds. Is that such a bad thing?

I think we can party in the Oval if that happens."

THAT would be freakin' sweet.; August 18, 2009 at 6:27 PM

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FALSEHOOD: No one has won against our landlord in court. Our landlord, this case Blackstone, would like nothing better than for residents to think that anything legal is hopeless. Management wants residents to go away on certain issues and be forever quiet. The "fact" that no one has won in court is a FALSEHOOD. I know of an individual who won in court when she proved that her ST apartment had loud noises outside that prevented her from doing her job, which took place in said apartment. Also, please remember that the new rents laws passed in NY and landlords are not pleased. Also, remember that there was a case, about the tax break J-51, where the landlords charged more than they should have. The landlords had to pay up. (Of course, they crafted the situation to their advantage, but that is another issue.) The fact remains that you, as a resident of Stuy Town, have legal recourse, but you need documentation, the more documentation, the better.

Management has two priorities: 1) Making sure money is made, hence upgrading and filling up apartments is their goal. "Amenities" are important in selling the place, though few residents use them. 2) If someone needs medical attention, Public Safety will be there, if alerted.

Quality of life issues are not that important, however. Things like the carpet rule or outsider dogs. These "rules" tend to be ignored, on purpose it seems. So you will see a lot that isn't taken care of properly, and complaints will be met with a creative excuse and a smile.

Though money was always important, it is now more important than ever. Money rules many things, as you will find.

At this point, 30 years into living here and seeing many things, I can state that Management and their reps are BS-ing us. I can't say that loudly enough: We are being BS-ed. I don't see any genuine change, though the "selling" of this place is intense. Few of the "rules" will be enforced, as Management doesn't want to lose customers or potential customers. Where personal integrity is a hallmark of an excellent management style, this integrity is not seen in enforcing some of the rules.

Our Tenants Association is, basically, null and void. Oh, it is still around, but it lacks the will power to confront much of anything. The TA will ask for your dues, however. By now, the TA is a charade.

Life in Stuy Town

I write this on May 3, 2018: Since this year, there have been three suicides in ST/PCV. Aside from silence by almost everyone, there occurred a suicide where sulfuric acid was used and the city had to be called in, including the Fire Dept. As of now, there has been a general state of silence about this suicide, even though other resident lives were at danger. Yes, our councilperson is silent. The TA is silent. Obviously, Management is silent, too.

Added April 29, 2019: Another suicide in ST/PCV. That we know of.

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"We'll be introducing a new process to identify registered dogs thus enabling Public Safety Officers to clearly approach offending dog owners. The registration will hang from the leash handle; clearly identifying the dog as registered.

"If the dog is not registered by May 1; a summons will be issued at the point of contact. If we learn the dog owner is not a resident, they will be escorted off the property."

Rick Hayduk, CEO and General Manager of PCVST. Letter to Barry Shapiro, February 2016.

STR here: I have been around since the inception of this dog policy and I have NEVER seen anyone escorted out of ST or PCV with their non-lanyard dog. But I have seen, many times, a dog owner from outside, and his/her dog, casually walking through ST or PCV.

BICYCLES, MOPEDS, SCOOTERS, ETC.

What is legal?

Something for everyone to read:

Motorized vehicles:

The direct link:

https://dmv.ny.gov/registration/motorized-devices-cannot-be-registered-new-york

And...

Of course, "private property" but "public access" - whatever that means! And if a part of it is public access, do the rules of the city apply to our roads and sidewalks? Or does anything give because this complex is "private property"? Who comes here in case of a fire in one of our buildings? The Stuy Town Fire Brigade?

Hint: Look both ways if you are in the complex. Look on the ground, too!

61.03 Control of dogs and other animals to prevent nuisance.
(a) A person who owns, possesses or controls a dog, cat or other animal shall not permit the animal to commit a nuisance on a sidewalk of any public place, on a floor, wall, stairway, sidewalk, lawn, garden or roof of any public or private premises used in common by the public, or on a fence, wall [or], stairway or entranceway of a building abutting on a public place

Banned & Oversize Dog Breeds in Stuy Town

Message from now EX-Landlord Rob Speyer to Stuy Town & Peter Cooper Tenants 11/06

I am writing on behalf of everyone at Tishman Speyer to express how honored we are to become part of your outstanding community. We are a business with deep roots in New York, a true love of our city and a great respect for the neighborhoods that make it special. We are committed to maintaining the unique character and environment that have made Peter Cooper Village and Stuyvesant Town such a wonderful place to live for so long. We look forward to providing you an extraordinary level of service and attentiveness that will be the source of pride and satisfaction for the entire community.

Neighborhood Recommendations

New to Stuy Town/Peter Cooper Village? Here are some basic recommendations.

Best gym: Don't waste your money on the Oval Fitness Gym. Instead go to the earthy but real Asser Levy Recreational Center, right above 23rd St on Asser Levy Place (near the FDR Drive). $75 for a year's membership; seniors are almost free. Contains seasonal indoor and outdoor swimming pools, ping-pong table, two pool tables. Called by some rich people who wouldn't get caught going there "the prison gym," and you know why.

A Stuy Town favorite is Lenz's on 20 St. between the 20 St. Loop. The way New York used to be. Be careful of unwanted "pepper" in your food, however. Lenz's got a B grade rating and was temporarily closed down due to an order from the Health Department. Bruno's on First Avenue is more upscale, with a greater selection of food items (higher-priced, too), but was closed down temporarily by the Health Department. Stuy Town's own cafe was closed, too! And not because of all the dogs that hover and piss outside.

Gracefully has two locations, but we prefer for its size the one on 1st Ave. Prices are high and reflect the new tenants that are currently renting Stuy Town and Peter Cooper apartments. ("Do you have a credit card?") We like Gracefully's lunch specials, which are somewhat affordable.

I priced the CVS on 1st Ave near 14st. The non-aerosol hairspray was 20 cents above CVS' own website price, and one of the highest in NY. (Yes, I have hair.) You can save at least a dollar or more buying at another place. So beware. Look around for a better deal on all your items.

I love warm Quaker Oats in the morning. Gristedes is not the place to get it, nor is Associated, though their price is less. Look around!