RCA in the commercial property press:

Creditors Take Over $5.4 bil. NYC Housing Complexes

NPR reports: A New York investment group said that it’s walking away from its purchase of Stuyvesant Town and Peter Cooper Village, two sprawling multifamily apartment complexes on the east side of Manhattan. The move marks the collapse of the largest residential real estate deal in United States history. Investors ranging from CalPERS to the Church of England will take a hit.

Tishman Speyer and its partner had been negotiating since November to restructure $3 billion worth of debt and hold on to the properties, but they have now relinquished ownership.

Peter Slatin is editorial director of Real Capital Analytics. He says there’s a lesson in what’s happened to the two complexes. "To me this is emblematic of the extremes of the last cycle when investors really lost sight of the value of real estate as an income-producing asset, and saw it as a speculative investment on a grand scale."

Slatin says that with the commercial real estate market as weak as it is right now, this will not be the last property to go under, though few of the deals that collapse will be as big as this one.

Articles related to this topic:

 Tishman Speyer's $5.4 Billion Boomerang
 Distress Calls Begin to Go Out
 Further Slide Seen In Commercial Real Estate
 Stuyvesant Town Gamble Costs Church of England £40m
 Philadelphia Story: Losing A Trophy Property
 Chase Tower Downtown Sold To Dallas Firm
 Flush REITs Have Loads Of Cash, Little To Spend It On

Posted by: Matthew Stone

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