It’s the poster child for the entire housing bubble. There’ll be some other spectacular blowups, but this will be at the top of the pecking order.
– Daniel Alpert, Managing Partner, Westwood Capital
The fact that they have given the keys back is going to have a chilling effect. This was such an enormous transaction that it looks like most, if not all, of the equity is going to be wiped out.
– Keven Lindemann, Director of Real Estate, SNL Financial
On Monday, Tishman Speyer and Blackrock, which led a group of investors in the $5.4 billion 2006 acquisition of one of the largest apartment complexes in Manhattan, Stuyvesant Town and Peter Cooper Village, turned over the keys to their lenders. This after defaulting on $4.4 billion in loans on January 8. A long list of equity investors and mortage lenders will probably be completely wiped out.
Source: “Wide Fallout in Failed Deal for Stuyvesant Town”, The New York Times, January 26, A1
For more see: “The Pain Still To Come In Commercial Real Estate And Private Equity”, Top Gun Financial, September 9, 2008.