11,000+ Unit NYC Apartment Complex Defaults; City Lawmakers Concerned About Possible Neighborhood Fallout; Appraisers Say $5.4B Property Now Worth $2B

In New York City, Reuters reports:

• The joint venture led by Tishman Speyer and BlackRock Inc that owns New York City's vast Stuyvesant Town/Peter Cooper Village apartment complex on Friday said it missed making its full loan payment, moving the deal one step closer toward possible foreclosure. Credit agencies had warned that the joint venture, has seen the complex's value collapse by more than half since buying it for $5.4 billion in 2006, would likely default as it burned through reserves during a court battle over whether it could deregulate rents and raise them to market prices as swiftly as planned.

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• The payment lapse could set in motion a foreclosure process, but many experts said that is unlikely -- at least in the near term, given the anemic real estate market. The property is now valued at $2 billion or less, according to appraisers, so a swift foreclosure would mean lenders could lose even more money.

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• City Council Speaker Christine Quinn and Councilman Daniel Garodnick, who lives in the complex, said they were concerned about any negative impact on the community.

For more, see Huge NYC apartment complex misses loan payment.

See also, New York Post: StuyTown default worries 25,000 tenants (New York real estate giant Tishman Speyer yesterday missed a $16 million mortgage payment for Stuyvesant Town-Peter Cooper Village, raising questions about the future of the 80-acre property and its 25,000 residents).

Go here for other posts on the Stuyvesant Town / Peter Cooper Village fiasco.