And You Thought Your Mortgage Was Under Water!!! Check Out This Loss - $3.5 Billion!
Three years ago when the real estate market was at its peak, TIshman Speyer and BlackRock Realty put together the nation's largest real estate deal when they packaged a deal to buy Manhattan's largest apartment complex: Stuyvesant Town and Peter Cooper Village. The price tag: $5,400,000,000.00!!!! Another $900,000,000 was required for reserves bringing the total investment to $6.3 billion. Like many who speculated in real estate at the peak, the investor's plans did not turn out as they had planned.
Today, Tishman and BlackRock confirmed that they are handing over the keys to their lenders and walking away. How much did they lose? The property today is valued at $1.9 billion, resulting in a loss in value of $3.5 billion. So, in perspective, the Chicago real estate market isn't so bad after all.
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