The owners of Peter Cooper Village and Stuyvesant Town in Manhattan have decided to give the property back to the lender. Tishman Speyer Properties and BlackRock Inc. paid $5.4 billion for the project at the height of the real estate bubble in 2006, borrowing $4.4 billion.
"By some accounts, Stuyvesant Town is only valued at $1.8 billion now, less than half the purchase price. By that measure, all the equity investors--including the California Public Employees' Retirement System, a Florida pension fund and the Church of England--and many of the debtholders, including Government of Singapore Investment Corp., or GIC, and Hartford Financial Services Group, are in danger of seeing most, if not all, of their investments wiped out."
