Grim Forecast for Stuyvesant Town Finances

Every $5.4 billion purchase of a sprawling apartment complex during the height of the boom has its problems! Bond analysis firm Fitch Ratings released information about Tishman Speyer's Stuyvesant Town-Peter Cooper Village complex and found the developer "has approximately six months of reserves remaining to cover the trust portion of the total debt on the property." The Observer puts it more bluntly: "When the reserve is completely eroded, Tishman Speyer... would need to put in more cash or potentially face default on its loans." The threat of default is something that observers had been suggesting since last summer, after an earlier analysis of Tishman revenue. While Tishman Speyer hasn't commented, a tipster told Curbed yesterday that much of the complex's staff seemed to be laid off.

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By Jen Chung in News on January 23, 2009 8:15 AM

Comments [rss]

Future Taliban

Tishman Speyer can still cover its losses by raising rents to $750.000 for a 1 bdr and $1.2 mil for 2 bdrs.

NannyState

What NYU student could afford that after endless partying in the Meatpacking District?

Tower18

$3,000 a month to live in the PJs...sheesh.

Spirit of 76

Maybe if they default, the tenants can band together and buy the property. Of course, I can imagine some new "owners" getting greedy and listing for ridiculous prices if the place goes condo.

JacqueMehoff

hey, it keeps the PI's, background checkers and lawyers working.

this should and always be low and middle income housing.

whoever thought it should be luxury, full service is nuts.

six months can't come soon enough. I hope they invested with Madoff while I'm at it.

heycarrieann

Virgil, you are so right! Those sleazy bastards were going after people for any and every "violation" they could come up with. I have a friend that worked in the leasing office, and had them go through every tenant file trying their damnest to get rid of long term tenants, which they thought would be easy. They were also renting out apartments to NYU students at market rent making the parents to co-sign, knowing that students would be there for a limited amount of time. No tear hsould be shed for those money hungry slugs.

virgil

I'm finding it hard to muster up any empathy for these folks. Aren't they the same ones who were forcing out long-term residents in order to maximize their profits?

I guess this is what they call the beauty of the free market.