In 2007, Tishman Speyer renovated and converted 560 rent-regulated apartments at Stuyvesant Town and Peter Cooper Village to market-rate rentals. But the process was not without its struggles, and the battle scars of taking so many stabilized tenants to court are now showing. The Times reports that Tishman Speyer's net income on the property dropped $4.8 million in 2007, down to $108.3 million from the 2006 mark of $113.1 million. A report cites the legal fees and a softening in the rental market for the decline in profits, but free apartments given to teeny-boppers might have something to do with it, too.
Tishman Speyer, with equity firm BlackRock, purchased the 11,232 apartments in Manhattan's middle-class hideaway for $5.4 billion in 2006, and it was predicted that the 70% rent-stabilized (at the time) megacomplex wouldn't break even for six to eight years. It may only be two years in, but a decline in revenues is probably not what TS had in mind. And about those rent-stabilized tenants! The Times also reports that City Councilman Dan Garodnick (a Peter Cooper resident) held a rally yesterday to continue his call for a moratorium on Tishman Speyer's tenant crackdown. Of the cases Tishman Speyer has brought regarding rent-stabilization violations, the company has won only "roughly half," and that's according to TS itself. As for the other half?the half that was found to have a right to remain in their homes following a financially-taxing legal struggle?um...enjoy the movie theater?
· Stuyvesant Town Revenues Have Fallen, Report Says [NYT]
· All Curbed Stuyvesant Town coverage [Curbed]