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Tishman Speyer Properties and BlackRock Inc. (NYSE:BLK) will be down on their knees pleading for extra cash from investors including the nation's largest pension fund, California Public Employees Retirement System, to help pay off the nearly $4.4 billion in loans it used to acquire Stuyvesant Town Peter Cooper Village in Manhattan for a record $5.4 billion in 2006. Should the owners of the middle-income complex fail to convince CalPERS or any other investors, real estate analysts predict that Tishman and BlackRock could default on their loans. My how the mighty have fallen. Only three years ago, Tishman and BlackRock celebrated their purchase of Stuytown Peter Cooper Village, outbidding several offers that included a tenants' bid as well one from Middle Eastern investors. Now Tishman and BlackRock's feelings of excitement for winning a property of 80 acres of prime real estate in Manhattan has turned to utter fear as the real estate market has reversed course, slapping the owners in the face with a harsh reality that they overpaid. The situation is so dire for the owners of Stuytown that The New York Times reports that two real estate executives insist that the owners have enough money until February to pay their loans. It doesn't help that rents are down 25% and a court decision could force Tishman and BlackRock to pay back hundreds of millions to tenants for illegally overcharging them. Additionally, Realpoint, a credit rating agency, estimates that Stuytown Peter Cooper Village has declined to a value of $2.13 billion, meaning $1.9 billion of equity has vanished. Should Tishman and BlackRock default, they'll join a bevy of other well-known real estate investors such as Stellar Management and Harry Maclowe who got above their heads acquiring New York City real estate during the peak of the market. But the Speyers -- principal owners of Tishman Speyer -- tell the Times they are still providing investors with "20 percent returns" and have $2 billion to invest in new deals. "You show me anybody who measured up to that standard," Jerry I. Speyer, chairman and co-CEO of Tishman, told the Times. That may sound all well and good, but at the end of the day, perhaps he should consider ponying up some of their dough to cover those StuyTown loans. - Gerald Magpily Dealscape: Florida fund has black eye from Stuytown deal
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From: slob,
Tishman Speyer are white collar criminals. If the court of appeals rules in favor of TS the tenants will rise up and go ballistic.
Posted on:
September 10, 2009 9:30 PM
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Californians hold the keys to the future of what some call New York City's last middle-income apartment complex. 
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Isn't this just an obvious public relations blitz by Blackrock and Tishman in an attempt to sway the NYS Court of Appeals in the case to be argued tomorrow? Jeez cmon journalists!