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Stuy-Town Loan Goes Into Special Servicing

NEW YORK CITY-A spokesman for Tishman Speyer says the move is intended 'to facilitate negotiations' on a restructuring of the $3-billion loan.

By Paul Bubny | Updated on November 09, 2009

NEW YORK CITY-The $3-billion loan on Peter Cooper Village/Stuyvesant Town has been transferred into special servicing, Fitch Ratings said Friday evening. A spokesman for Tishman Speyer Properties, which owns the 11,227-unit apartment complex in a joint venture with Blackrock Realty, tells GlobeSt.com, “We requested that the joint venture’s loan be moved to special servicer in order to facilitate negotiations on a restructuring of the debt load.” According to a release from Fitch, the special servicer is CWCapital.

Although the Stuy-Town loan is not in default, Fitch says cash flow generated by the 56-building property is “insufficient to service the debt.” Debt service reserves are expected to be depleted by the end of December, according to the ratings agency.

In separate ratings actions taken in August and at the end of October, Fitch downgraded several classes of CMBS containing portions of the loan. The agency’s Oct. 30 action occurred after the ruling by the New York State Court of Appeals that rent-stabilized apartments at Stuy-Town were illegally decontrolled.

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