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Friday, January 08, 2010

Stuy Town-real estate deal defaults. Church of England, others, lose it all.

1/8/10: "Tishman Speyer Properties LP and BlackRock Inc. will miss a bond payment today on debt from their $5.4 billion purchase of Manhattan’s Stuyvesant Town and Peter Cooper Village apartments, the companies said in a statement....Missing the payment puts the 80-acre property, Manhattan’s largest residential enclave, on course
  • 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,"...
"And just as the transaction was the biggest real-estate deal in American history, the collapse is liable to be similarly epic.

  • 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

The Wall Street Journal reported a list of the major investors that includes the Florida state pension system ($250 million), real-estate firm SL/Green ($200 million), and Industry analysts estimate Stuy Town is currently worth around $2 billion—a 65 percent loss from the purchase price....

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