Owners of Stuyvesant Town and Peter Cooper Village, a vast New York apartment complex, will miss a $16 million loan payment on Friday, putting them in technical default on their mortgages, the New York Times said, citing executives briefed on the matter.
The properties, which encompass 80 acres, 52 buildings and more than 11,000 apartments on the east side of Manhattan, were bought for $5.4 billion in 2006 by a joint venture of commercial real estate owner Tishman Speyer and the real estate arm of money manager BlackRock Inc (BLK.N).
The properties have lost about $3 billion in value since they were acquired, mainly because of the U.S. commercial property bust, experts have said.
The partners could not pay the entire amount due on Friday, the paper said, noting Tishman declined to comment.
Tishman and BlackRock were not immediately available for comment outside regular U.S. business hours.
(Reporting by Santosh Nadgir in Bangalore, Editing by Ian Geoghegan)