$5 Billion Town In U.S Going In Default

Stuyvesant Town Ruling Worries Tenants and Landlords Alike

Times Topics: Tishman Speyer Properties
The $5.4 billion purchase of the complexes’ 110 buildings and 11,227 apartments by Tishman Speyer Properties and BlackRock Realty in 2006 made headlines. But the denouement at Stuyvesant Town and Peter Cooper has cast a pall over what had been a comfortable harbor for the city’s middle class since the complexes opened in the late 1940s.

“It worries me,” said Anne Granberry, a nurse who moved into Stuyvesant Town in June. “They haven’t told us anything.”

Tishman Speyer declined to comment, although executives who had been briefed on the matter said the partners could not pay the entire amount due.

City Councilman Daniel R. Garodnick, who lives in Peter Cooper Village, said Tishman Speyer notified him on Thursday afternoon that it would not make its mortgage payment on Friday.

Tishman Speyer and its partner have been negotiating since November to restructure $3 billion worth of debt and to hold on to the properties, which cover 80 acres east of First Avenue, from 14th Street to 23rd Street. But their reserves, once stuffed with $890 million for capital improvements, interest payments and renovations, are now virtually depleted.
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