Acquired in 2006 for $5.4 billion, it was the most ever paid for a single residential property in the U.S.
"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 venture said in a statement to The Wall Street 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."
The failure of Stuyvesant Town reflects the conditions of the apartment market throughout the country, which is in shambles from the high unemployment rate hammering rents and occupancy levels. Highly leveraged deals done by private companies are suffering the most as they have been closed out of the capital markets, unlike their larges public real-estate company counterparts.
About EQUITIES:
Since 1951, EQUITIES Magazine has been a leading media company providing business editorial content designed to serve the needs of business leaders, professionals, institutional investors and retail investors. We are focused on business and the business of making money, not on lifestyle subjects. We publish original reporting in print and on our website, as well as select content at www.nasdaq.com. For 28 years we have hosted our own branded investor conferences that connect public company CEO’s with our loyal readers in the investment community.
Sign up for a free one-year subscription to EQUITIES Magazine
