Stuyvesant Town–Peter Cooper Village (2010)
In 2006, a joint venture led by Tishman Speyer bought the massive 11,200-unit Manhattan apartment complex for $5.4 billion, using heavy debt. After the 2008 crash, rents didn't rise as expected, and the partnership defaulted on a $3 billion mortgage. In January 2010, lenders took control.
The lenders wrote down billions and the property was transferred to a new ownership entity.
The foreclosure reset pricing for mass-market rental properties and highlighted the dangers of over-leveraged multifamily acquisitions.
Like Selkirk Place, a leveraged purchase at peak market conditions collapsed when values fell and debt couldn't be refinanced.
