Stuy Town-real estate deal defaults. Church of England, others, lose it all.
- Another alleged financial genius bites the dust. Purchased in 2006: "A default “could be the triggering event for the collapse of the commercial real estate market,”" (10/22/09 prediction)...
- to become the second- largest default in a commercial mortgage-backed security, after the $4.1 billion default of loans backing Extended Stay America Inc. hotels last year,"...
- The problem is not only the deal’s size. Like so many deals of a bubble vintage, Stuy Town’s mortgage was sliced and diced and
- sold to investors around the world.
Debt holders include the government of Singapore, the mammoth California pension fund CALPERS, as well as beleaguered mortgage giants
- Fannie Mae and Freddie Mac, which collectively hold as much as $2 billion of Stuy Town’s debt. ...
- remarkably, the Church of England ($70 million). Much, if not all, of these investments could be vaporized.
Complicating matters is that millions of debt has been snatched up on the cheap by
- hedge funds playing a vulture’s game,
- "“The losses the lenders are going to take on Stuy Town could force them to call some of their other loans on commercial property.” "... photo ap
Labels: global impact, Predicted giant commercial real estate default
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