As underwater homeowners around the country despair over whether to keep paying their mortgages or just walk away, investors in the largest residential real estate deal in U.S. history have just walked away from 11,232 properties in one fell swoop.
On Monday a group led by Tishman Speyer Properties gave up the 56-building, 11,232-unit Peter Cooper Village and Stuyvesant Town apartment complex in Manhattan, turning the properties over to its creditors after defaulting on some $4.4 billion in debt. The group decided to "transfer control and operation of the property...to the lenders," it told the Wall Street Journal. The $5.4 billion acquisition in 2006 was the single biggest residential property purchase in U.S. history.
It's now worth an estimated $1.8 billion, putting the properties' owners "underwater."
More Here..
Oh Boo, oh boo woo....what will we ever do?
ReplyDeleteOne place goes underwater and the commercial real estate market in doomed?
MORE FEAR MONGERING.....HAAHAHHAHA
I know better
2:08 I guess you didn't click on the link to read the rest of the article, it wasn't a commercial property it was a LARGE RESIDENTIAL DEAL and more of them went down as well. At least if you pretend to be smart you can at least sound like it. "DUMB" MONGERING!
ReplyDeleteAll you have to do is look up commerical and industrial properties for sale, for lease and vacant properties and you will see some of the carnage that is present out there, this is not an opinion this is real.... All of you in denial who have high speed connections, sit and spend some time looking at reality before you shoot off your mouths,,, jobless recovery is an oxymoron, emphesis on MORON.. No jobs = no large purchases, and to the troll, yes the malls are busy but look at the people, they are not carrying bags full of goods, their just there to visit and walk around, I was there recently...
ReplyDeleteanother "drop" in the bucket...the bucket is already full of these bad debts. At some point it's going to over flow and people won't be able to ignore it anymore.
ReplyDeleteIt's not "fear mongering" if it's the truth!
We need to learn to ignore the spooks, as they tend to lead us to other subjects, usually not the subject of the article.
ReplyDeleteJust ignore them...
Another aspect i would like to point out that is rarely addressed is that ALOT of individual people lost ALOT of money on this deal. Not just investors and instituitions. The lawn mower; window washer; electric contractor, plumbers, flooring, lighting, snow , sanitation - I could go on for an hour.
ReplyDeleteThe point is - it's not "just a house" look what else that house sustains and creates and we all get a clearer picture of why it was called the American dream and not wher mine gubbmint?
Just a small drop in the ocean. What is 11,232 properties compared to the millions that are being sold at good prices. Did you know that property sales are at a two year high. I challenge anyone here to go on an auction and you will find that its very hard to get a bargain as tons of buyers are going on the market. A lot of people are getting frustrated because they can't buy a property not because they don't have cash but because there are too many buyers and prices are taking the lift up. Of couse the usual comment here will be obamabot, sheep, troll or whatever, but those who have been in an auction will know what i am talking about.
ReplyDeleteI would love to live in NYC or at least a place to stay when visiting. I hope they go cheap in the next few years.
ReplyDelete5:08 could not agree more. There are many large investment firms snatching all these properties up which makes "bargains" hard to come across. My company was looking for more wharehouse space, but ended up leasing for over the asking price as there were too many other places wanting the same thing, so when I read these artices I just have to chuckle, since it's taken out of context
ReplyDelete5:08 I'd love to call you an idiot but i did a little homework first.
ReplyDeletemy family hasn't been to the beach ( Duck, N.C.)
in 3 years because basically I've been working.
So i went to my usual realtor website & tried to book the same place we rented for the week 3 years ago - feeling really good because we have the money and i was damn sure no one else does.
The damn thing is booked SOLID from June 13th thru October !
Somebody has there wires crossed here 'cause this house goes for 7K a week.
@5.34
ReplyDeleteWHAT kind of a house would be worth 7K a week?
I could not stop the migraines the whole week I was paying that kind of money for a "roof".
That's a thousand a night! (if the week includes the weekend). Whaaaaaat???????????
To the untrained eye, this looks like somone lost money. NO such thing. You see, the game is rigged, the fix is in, such that what really happened was that Tishman spear made money. They 'returned' the keys to the property to the 'creditors' but they pocketed plenty of 'cash back as signing for property improvements'. Plus, they took out derivative insurance contracts that paid them in the event of a default. Amazing ain't it?
ReplyDeletePlus, the creditors got ALL the money back PLUS ALL THE INTEREST RIGHT NOW from the government.
It's just another way to rape the taxpayer.
If you worked for Goldman Sachs, you'd be snorting a line of coke off a hookers ass and laughing at the 1million+ starving homeless huddled in the filthy subways under Rockefellor center in the winter.
5:56 HA LOL
ReplyDeleteA million homeless? what a crock of SHIT
I call BS on this one, a thousand, maybe