alstry (35.70)

It Happens.....1.01.10

January 25, 2010 – Comments (1)

The owners of Stuyvesant Town and Peter Cooper Village ... have decided to turn over the properties to creditors, officials said Monday morning.

The decision by Tishman Speyer Properties and BlackRock Realty comes four years after the $5.4 billion purchase of the complexes’ 110 buildings and 11,227 apartments in what was the most expensive real estate deal of its kind in American history.

 ... By some accounts, Stuyvesant Town is only valued at $1.8 billion now ... 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.

http://www.calculatedriskblog.com/2010/01/stuyvesant-town-turned-over-to.html

A 70% decline in value in about 4 years........not good for our pensioin funds.  And there are a lot more like the above on deck.

Simply too much debt and too little revenues to cover interest and expenses......

Welcome to Zombulation Station......Where America simply has too much debt and too little interest to service interest and cover obligations at the same time.....and it is just starting to happen.