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Stuy Town Landlords Lack the Skills to Pay the Bills

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D-Day has finally arrived. After months of speculation on depleted cash reserves, the owners of Stuyvesant Town and Peter Cooper Village will miss a $16 million loan payment today, triggering a (technical) default and sealing Stuy Town's fate as the biggest real estate oopsie in history. Tishman Speyer and its partner BlackRock have been in talks on restructuring $3 billion in debt for a couple months, so the massive 11,000-unit rental community will not abruptly get yanked from them, but this is still a milestone in the unraveling of the record-setting $5.4 billion purchase of the complex in 2006. How will a likely transfer of power in the coming months affect tenants? Not at all, the Stuyvesant Town-Peter Cooper Village Tenants Association hopes. The TA issued a statement saying, in part, "We believe that little, if anything, will change in the immediate future. Rent should still be paid in the same way it always has been paid." Which means, if recent history is any guide, that tenants should feel free to pay less of it.
· Partners Near Default on Stuyvesant Town [NYT]
· Stuyvesant Town coverage [Curbed]