Tishman Speyer Properties, the real estate developer that owns the historic 80-acre property with asset manager BlackRock, has just $6.75 million left in reserves for StuyTown, according to credit rating agency RealPoint.
That isn’t enough even to cover December’s costs, which include more than 6 percent interest on a $3 billion loan.
“We could easily see them go delinquent in December,” said Steve Kurtitz, a senior vice president with RealPoint.
A person close to the StuyTown partnership said, “We fully expect the borrowers will make the December payments” — and that default will more likely come in January.
The person, who asked not to be identified, declined to say where the extra money might come from.
The gap could be covered by rents since the reserve is meant to fill in any shortfall between costs and profit from rents, but much of the rent money has also been locked away in escrow accounts in recent months because of a major dispute with tenants.
With default looming, the owners of StuyTown recently asked for forbearance, or a postponement of foreclosure, as they try to work out a deal with their bondholders, Kurtitz said.
Tishman orchestrated a purchase of the property for a record $5.4 billion in 2006. The company’s goal was to make a mint by converting scores of rent-stabilized apartments to market-rate units. In October, the New York Court of Appeals squashed those plans when it ruled that the owners wrongfully raised rents.
Now, experts estimate the property is worth as little as $1.8 billion.
Meanwhile, an effort by several New York legislators to get bondholders Fannie Mae and Freddie Mac to include them in any restructuring, hit a wall. In separate letters to the group of legislators, the two lenders said that while they “understand” and “support” tenants concerns, they are in no position to help.