Monday, September 14, 2009
The most expensive real estate deal in U.S was the sale of Manhattan's Stuyvesant Town and Peter Cooper Village for a whooping $5.4 billion in the year 2006. But after that the property has lost more than half its value, while rent payments fail to cover even half of the debt service. Tenants are so much worried that they have sued the property management firm Tishman Speyer Properties for illegally raising the rent. A lower New York State appeals court ruled in favor of the tenants. Now the opponents are sparring in the state's top court of Appeals.
Analysts predict that the owner, Black Rock Realty, will blow through the $890 million that they have set aside for maintenance and will likely default early next year.
Analysts predict that the owner, Black Rock Realty, will blow through the $890 million that they have set aside for maintenance and will likely default early next year.



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