Stuy Town Debt Holders Give Tishman Speyer and BlackRock Ten Days to Pay

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Not even a week after the owners of Stuyvesant Town and Peter Cooper Village defaulted on a loan payment for the first time, mezzanine debt holders are demanding payment and taking steps toward forcing a foreclosure. A group led by Winthrop Realty Trust (which holds about $300 million of the complex's debt) sent a letter to Tishman Speyer and BlackRock giving a deadline of ten days to make good on the missed $16.1 million payment. If the owners don't, the group says they will pursue "rights and remedies," which likely means a foreclosure sale. They can act within three to six months. Of course, the property was bought for $5.4 billion in 2006 and as recently as October was valued at $1.8 billion, so foreclosure doesn't look promising for anyone either. “The sharks are circling in the waters,” said New York City Councilman Daniel Garodnick, a Peter Cooper Village resident who is worried about how foreclosure will affect services and rents for the roughly 25,000 residents. “This is a point of great concern.”

Stuyvesant Town Debt Holders Weigh Foreclosure [Bloomberg]