Peter Cooper Village

Peter Cooper Village and Stuyvesant Town will be handed over to the creditors as Tishman Speyer and Black Rock Reality were unable to fulfill their financial commitments.

The spokesperson for the two giants said that handing over the control is the only possible solution to avoid bankruptcy. The partnership was unable to pay a loan installment of $16 million in the beginning of this month.

Black Rock, Tishman made a historic deal when they bought apartment complexes for around $5.5 billion and they have had planned to develop the rent-stabilized apartments into luxury houses. The slowing down of the real estate market left them not keeping up with the payments. Tishman and Black Rock got a blow when a court ruled out their $200 million rent increase declaring it illegal.

One of the rent –stabilized resident expressed his worries saying that he was nervous and did not know what these people were trying to do. He also added that he had been enjoying living there and he is little bit nervous about the change of ownership.

The 11000 apartments in Peter Cooper Village and Stuyvesant Town are homed with at least 25000 tenants who have become anxious about their future in their houses as it is yet unclear that who will own the apartments.

It is still uncertain who the new owners are, however a company representative from Tishman said that company will remain in charge of the management of the property during the handing over period.