The Peter Cooper Village/Stuyvesant Town $3 billion A-note loan has been transferred to specialty servicer CWCapital due to the sponsors' request for relief.
Details of the request for relief by Tishman Speyer Properties and Blackrock Realty have not been disclosed.
Fitch Ratings expects debt service reserves to be depleted by the end of December. In addition, Fitch expected the transfer of the loan to special servicing as cash flow generated by the property remains insufficient to service the debt.
Peter Cooper Village/Stuy Town comprises 56 multi-story buildings situated on 80 acres and includes a total of 11,227 apartments. The loan sponsors Tishman Speyer Properties and BlackRock Realty acquired the property with the intent of converting rent-stabilized units to market rents as tenants vacated the property.
However, the conversion of units has since been determined to be illegal by the New York State Court of Appeals.
In addition to the $3 billion securitized balance, there is an additional $1.5 billion of mezzanine debt held outside the trust.