From The Observer:
The main $3 billion mortgage for Stuyvesant Town and Peter Cooper Village has been transferred to a "special servicer," according to the rating agency Fitch, a significant step taken when loans are in default or on the verge of default.
The owners of the giant 11,200-unit Manhattan apartment complex, a partnership led by Tishman Speyer and BlackRock, had just $24 million left last month in a reserve fund to pay off debt, and default was expected in a matter of weeks.
Typically, the transfer to a special servicer gives power to that entity--in this case, CWCapital--to restructure the deal, taking the power away from the owners given that they are unable to keep paying. Eventually, if the complex is sold, money would likely be returned to the main bondholders--entities such as Fannie Mae and Freddie Mac--though the complex has been given a value of about $1.8 billion, significantly less than the mortgage amount, so some bondholders would clearly take a loss.
More here.
2 comments:
So this is the fruits of your greed and viciousness, Tishman Stinking Speyer. You greedy, avaricious, stupid BASTARDS. This is your legacy and what you will always be remembered for.
Funny. When you click on the link for "more" an ad for Related Properties comes up. Funny because they managed a REIT called Charter Mac for years that invested in low income housing.
They had a model that could not lose. Backed by gov't funds. Providing low income housing and high returns to their equity investors. Went bust just over a year ago. Guess they were wrong, too.
Sound familiar?!?
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