Tishman Speyer and Blackrock Realty Inc. have decided to turn over the Peter Cooper Village and Stuyvesant Town apartments to creditors and investors. The owners began defaulting on payments earlier this month and decided to give up the property rather than face bankruptcy and foreclosure.
When the property was bought in 2006, it sold for $5.6 billion—breaking the record for the most expensive realty sale. Today, the complex is estimated to have dropped in value by almost $4 billion (approximately 65 percent) since its purchase in 2006.
The property’s investors and debt holders include the state of Florida, California Pension Plans, the government of Singapore and even the Church of England. $4.4 billion was loaned in total. Tishman Speyer, which has invested in high profile properties like Rockefeller Center and the Chrysler building, only put up $112 million.
The paired building complexes Peter Cooper Village and Stuyvesant Town reach from 14th to 23rd Street and First Avenue to Avenue C. Approximately 25,000 residents live in over 50 buildings. The complex was developed in the post-war 1940s. Its original residents included middle veterans and middle class families who paid less than $100 a month. Today, the luxury complex’s amenities include a putting green, tennis and basketball courts, bus service to the Hamptons and concierge service.
In a statement, Tishman claimed the decision to give up the property included concern for the interests of both the city and the residents of the apartments. Earlier this year, residents filed a $40 million class-action lawsuit against Tischman for unfair eviction.