NEW YORK CITY-A report from Moody’s Investors Service indicates that the delinquency rates for US commercial mortgage-backed securities is down for March, but one beleaguered New York City property is immune to even this good news.

The loan for Stuyvesant Town and Peter Cooper Village accounts for a whopping 42% of New York’s overall delinquent balance. According to the report, New York is the metropolitan statistical area with the largest outstanding CMBS balance, at just under $80 billion and a delinquency rate of 8.85%.

Late last month Fitch Ratings again downgraded its rating for the $2.42-billion loan pool of which the Stuyvesant Town and Peter Cooper Village debt is a part. “It’s not a surprise that an additional pool of loans linked to this property was downgraded,” says Dan Fasulo, managing director at Real Capital Analytics, adding that the property’s future hinges on what happens in New York State government and what guidance the courts provide. “The debt burden on this property is going to need to be reduced,” Fasulo tells GlobeSt.com. “And that’s what the parties involved in the property are going to have to get done.”

Currently under management by Rose Associates, renovations have started on 570 vacant apartments at the properties. A representative from Rose Associates said that the company “was not authorized to speak about Stuyvesant Town,” and declined to comment on the renovations. Soni Fink, a representative of the Stuyvesant Town-Peter Cooper Village Tenants Association, however, confirms to GlobeSt.com that renovations are underway.

“It’s pretty noisy,” Fink says. Meanwhile, Fink and other residents are awaiting a ruling on a class action suit the results of which will impact the formula used to calculate current rents and past overcharges.