Search
 

Stuy-Town Lenders Step Onto Foreclosure Road

NEW YORK CITY-The filing in US District Court covers the $3-billion mortgage on the complex, but not $1.4 billion in mezzanine debt.

By Paul Bubny | Updated on February 17, 2010

NEW YORK CITY-In a move that marks the first step down a potentially long road, lenders on the $3-billion Peter Cooper Village/Stuyvesant Town mortgage began foreclosure proceedings Tuesday. The filing by trustees Bank of America and US National Bank Assn. seeks federal court approval to sell the 11,227-unit complex—approval that could be a year or more in coming. That was the time span, for example, that elapsed between lenders filing suit to foreclose on $241 million in debt on Riverton Houses and a state Supreme Court judge’s order earlier this month to sell the seven-building East Harlem apartment complex at auction.

Tuesday’s filing, at US District Court in Manhattan, covers only the first mortgage on the complex, which a joint venture led by Tishman Speyer Properties and Blackrock Realty acquired for $5.4 billion in 2006. There’s also $1.4 billion in mezzanine debt, held by entities including Winthrop Realty Trust, the government of Singapore and Deutsche Genossenschafts-Hypothekenbank AG.

That mezz debt led to a 77-basis point increase in US commercial real estate CDO delinquencies to 13%, Fitch Ratings said Tuesday. Five mezz loans backed by interests in Stuy-Town become delinquent in January, after the JV went into technical default. Later that month, Stuy-Town’s owners handed over the keys to the 56-building complex, seeking to transfer the property to special servicer CWCapital via a deed-in-lieu.

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?

NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.

GlobeSt

Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2024 ALM Global, LLC. All Rights Reserved.