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Credit rating agency Real Point LLC estimates the property is now worth less than $2.1 billion, less than half of the acquisition price. What's just as frightening is that Tishman and BlackRock burned through nearly $365 million of their reserves since the purchase with now only $33.7 million left to service debt. Some of the money was spent for legal fees to try to evict existing tenants in an effort to raise rents, but many of the cases have been tossed out of court. The old tenants paying below market prices left the owners far beneath their revenue expectations, which were vital for servicing the debt load. Deutsche Bank AG (NYSE:DB) predicted by 2011 net operating income would triple to $336 million from $112 million in 2006. Realpoint LLC says revenue for 2009 only will be $139 million. Some have also pointed out that reserves were wastefully spent on unnecessary upgrades in landscaping, which include a putting green and new trees, as well as significant renovations to vacant apartments, which include new kitchen cabinets and marble kitchen floors. But now, Tishman, BlackRock and its host of investors are paying the price, with some speculating that the owners can only hold off default till February. Here's a full list of notable investors in the purchase of Stuyvesant Town/Peter Cooper Village that will take a big hit on their wallets:
- Gerald Magpily Subscribers to The Deal Pipeline may read about the 2006 deal here.
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From: Stuyvesant Town Tenant,
To all those who have lost money on the Stuyvesant Town deal: Serves you right you greedy bastards for trying to make money on other people's misery. Hope you rot in hell.
Posted on:
October 20, 2009 3:08 PM
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The list of losers from Tishman Speyer Properties and BlackRock Inc.'s (NYSEBLK) record $5.4 billion purchase of sprawling New York City apartment complex Stuyvesant Town Peter Cooper Village in 2006 is getting longer. With the downturn of the residential real estate market, The Wall Street Journal 
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There's so much conflict surrounding how this area is being managed. It seems like some like it, some love it, and many either hate it and are vocal about it. One thing is for sure...Everyone who either lives in Peter Cooper Village or Stuyvesant Town or is thinking about living there, or thinking about leaving...EVERYONE is being affected. I'm sure there are some who will consider moving out either by choice or by necessity. I lived in the City from 1984-1994 and applaud the life-style. Loved it and hope come back to visit all the time. Perhaps there are those who want to explore options outside of the City. The suburbs of New York, like Stamford and Norwalk, offer lots and lots of hi-rise options or low rise lofts at a fraction of the cost. Also, Darien, Greenwich, Fairfield, and Westport are all within an hour on the train and as of this morning, there were over 4000 houses, apartments or condos for sale or rent in thes towns. Certainly, there are a few residents who want to take control of their housing needs instead of continuing to be priced out of the lifestyle they desire. The suburbs isn't for everyone, but .....