Talk about losing your shirt. Tishman Speyer Properties and Black Rock Inc. (NYSE: BLK) have lost more than $3.2 billion
on their $5.4 billion acquisition of Stuyvesant Town Peter Cooper Village complex in New York City in 2006, according to credit rating agency RealPoint LLC.
With the downturn of the residential real estate market, RealPoint says the property is worth about $2.13 billion, less than half of what Tishman and BlackRock paid for it.
That's certainly not good news for the buyers who have been in the headlines lately on speculation that they will run out of money to pay for $4.4 billion in loans by the end of the year.
A pending court case could accelerate Tishman's and Black Rock's woes. The two are likely hoping their lenders will restructure their loans to
stave off a default. If a default does happen, the 80-acre development, which has 11,232 apartments, goes into foreclosure
. - Gerald Magpily
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I'm glad you're following this story, which basically impacts the innocent people who unknowingly invested in this overpriced real estate via their pension funds. Additionally, middle-class people who are holding trying to live in that development intended for ordinary middle-income people are being kicked out because that can't afford the new exhorbitant rents.
I hope Tishman/BlackRock default and the bank who ends up with the property sells it back to the citizen group that originally made a fair bid in 2006. Tishman and BlackRock are getting what they deserve for trying to push out hard working New Yorkers such as nurses, teachers and cops that make the backbone of the Big Apple.
These real estate speculators and investment bankers are just leeches that are sucking the blood out of the city and the American economy! TheDeal, keep up the good work and shed more light on these con artists!