The joint venture between BlackRock and Tishman Speyer Properties has transferred to creditors the Peter Cooper Village and Stuyvesant Town apartment complex in New York, the Wall Street Journal reports.
Earlier this month, Tishman Speyer and BlackRock announced that they would not be able to make a full payment to senior lenders. In that announcement, the joint venture said it hoped to continue ‘good-faith negotiations toward a potential restructuring of the debt.’
Handing over the 56-building, 11,000-unit property amounts to a deed-in-lieu transaction, the Wall Street Journal reports.
‘It has become clear to us through this process that the only viable alternative to bankruptcy would be to transfer control and operation of the property, in an orderly manner, to the lenders and their representatives,’ the Tishman-BlackRock joint venture said in a statement to the Journal. ‘We make this decision, as we feel a battle over the property or a contested bankruptcy proceeding is not in the long-term interest of the property, its residents, our partnership or the city.’
SOURCE: Wall Street Journal