Tishman venture abandons Stuyvesant complex: report

By IBTimes Staff Reporter | January 25 2010 4:16 AM

A group led by Tishman Speyer Properties has decided to give up the sprawling Peter Cooper Village and Stuyvesant Town apartment complex in Manhattan to its creditors in the collapse of one of the most high-profile deals of the real-estate boom, the Wall Street Journal reported on Monday.

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The decision comes after the venture between Tishman and BlackRock Inc defaulted on the $4.4 billion debt used to help finance the deal, according to the paper's online edition.

Earlier this month, Gramercy Capital Corp, the most junior lender in the 2006 purchase of Stuyvesant Town/Peter Cooper Village, asked that co-owner Tishman Speyer be replaced as manager of the huge Manhattan apartment complexes.

Tishman Speyer and BlackRock Realty Advisors formed joint venture PCV ST to buy the Stuyvesant Town/Peter Cooper Village in 2006.

Steve Rubenstein, a representative of Tishman Speyer, could not immediately be reached for comment by Reuters outside regular U.S. business hours.

BlackRock Realty Advisors also could not immediately be reached for comment.

(Reporting by Bhaswati Mukhopadhyay in Bangalore; Editing by Jon Loades-Carter)