Major U.S. residential real estate deal falls apart

By IBTimes Staff Reporter | January 25 2010 1:44 PM

The landlords who acquired a massive apartment complex in Manhattan in 2006 for a record sum have decided to give up control of the property to their lenders, as the biggest residential real estate deal in U.S. history has collapsed after a missed debt payment.

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A group led by Tishman Speyer Preperties LP has decided to turn over the Peter Cooper Village and Stuyvesant Town apartment complex in Manhattan to its creditors.

The complex of apartments had been acquired from MetLife Inc in 2006 for $5.4 billion.

“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,” Tishman and BlackRock Inc said in an e- mailed statement today, according to Bloomberg.

Earlier this month, Tishman, whose partners in the venture include Blackrock, Inc, missed a monthly debt payment on the property on January 8.

Creditors include Winthrop Realty Trust and Gramercy Capital, according to the report.

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