Tishman Speyer's Stuyvesant Pain Over As Ownership Handed Over to Creditors

Tishman Speyer finally mailed in the keys to creditors of its massive Peter Cooper Village and Stuyvesant Town apartment buildings in Manhattan. In what is likely to be known for some time as both the biggest and dumbest residential deal (until the next bubble,) the drawn-out and painful saga of Stuyvesant Town will be sorely missed by those who have chronicled the tale. First, came the shock and awe when the deal was actually done in 2006 ("they paid how much at what cap rate???), followed by a period of intense speculation over how long it would take for the deal to burn through its interest reserve, followed by the lawsuits from furious tenants who did not want their below-market rents to rise, followed by the collapse of the economy, and the actual depletion of the interest rate reserve. Now, in what is largely a ceremonial move, Tishman will cede ownership to creditors. No doubt the folks at Tishman won't be shedding a tear as they put in only $112 million into the deal, leaving a trail of other equity investors holding the bag. The creditors will not be left unscathed either, as the properties are currently valued at $1.8 billion, with roughly $4.4 billion in debt piled on top. Who will take the reigns next? Stay tuned for Stuyvesant the Sequel.