Daily Real Estate News  |  October 16, 2009  |   New York Development Likely to Default
Stuyvesant Town and Peter Cooper Village, the New York apartment complex whose sale in 2006 was the largest residential deal in the city’s history, will likely default in December.

The previous owner MetLife Inc. sold the 56 apartment buildings for more than $5.4 billion. The purchasers, real estate investment companies Tishman Speyer and BlackRock Realty, which banked on higher rents than they were able to get after the real estate meltdown, now have only $33.56 million left in the interest reserves. Interest payments are estimated to be $16 million a month.

The New York State Court of Appeals is expected to decide by the end of this month whether the buyers can raise the controlled rents on the 3,000-plus units. A victory for the tenants will likely accelerate the default, analysts say.

Source: Reuters News, Ilaina Jonas (10/14/2009)