In a joint statement issued Friday, Tishman Speyer and BlackRock announced that they would not be able to make a full payment to senior lenders on the Stuyvesant Town and Peter Cooper Village apartment complex in New York.
‘The debt for Stuyvesant and Peter Cooper Village is secured exclusively by the property and is not cross-collateralized with any others,’ the statement said, adding that the announcement had no immediate impact on tenant services or daily operations.
The Tishman Speyer-BlackRock joint venture has been engaged in discussions with CWCapital, a special servicer retained by the lenders in November, and it "hopes to continue good-faith negotiations toward a potential restructuring of the debt," according to the statement.
Trepp, an analytics provider for the commercial mortgage market, says Tishman Speyer and BlackRock have been covering a shortfall between the rents collected and debt service on the loan with a reserve that has likely been exhausted.
"We've predicted before in this space that once the reserves on Stuy Town were depleted, the servicers would move quickly to place an appraisal reduction on the property," Trepp analysts said Monday. "The sheer size of the loan would make any potential servicer advances enormous, and we doubted that the servicers would be eager to make such advances.
"We still stand by that prediction, and it would not surprise us if the appraisal reduction came within the next 60 days," the analysts added.