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Mortgage Meltdown Watch: Stuy Town Edition

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"It's tough to say what Stuyvesant Town/Peter Cooper Village is worth now, but it's probably less than the $5.4 billion purchase price. If the complex were resold today, the buyers might not get enough to pay off the project's $4.4 billion of debt, wiping out their equity of $1 billion and some $900 million of additional funds, including the $400 million interest reserve, that were contributed to the deal. Assuming they're willing to continue pumping in money if needed, Tishman Speyer and BlackRock do have the luxury of time; the first mortgage doesn't mature until 2016." [Barron's]