Flying The Coop
Tishman Speyer and Blackrock Real Estate gave the high profile Peter Cooper Village and Stuyvesant Town apartment complex back to their lenders today. Restructuring talks collapsed over the weekend making a loan modification unlikely. I think this deal sold on a cap rate of like 4.5%, which was eye-popping in 2006, but in retrospect makes me wonder why this property was not lost sooner. This low cap rate looks even lower when it's taken into consideration that the two complexes had many apartment units that were rent controlled. Articles on the property are here and here. I posted last week that that the estimated value of the property is now $1.8 billion. For comparison purposes, the 2006 sales price was $480,983 a unit, and today the unit prices are $160,328 a unit.