ST/PCV lenders getting repaid: Report

By Sabina Mollot

Following the sale of Stuyvesant Town/Peter Cooper Village, at a record-breaking price of $5.45 billion, the property’s senior lenders who’d forked over $3 million are finally getting repaid.

According to a report issued in mid-January by real estate analysis firm Trepp “the ship has come in” finally, at least for one of the tranches of the CMBS (commercial mortgage backed securities) packaged deal. The smallest one at a measly $202.2 million – had been repaid. That piece represented 11.3 percent of the entire deal.

Sean Barry, a research analyst for Trepp, explained, “Everyone who lent that has been paid back. We anticipate that the full $3 billion (will be repaid unless) someone files another piece of litigation, but we don’t think that’s going to happen.”

The report also noted that the property’s mezzanine lenders are also partaking in the spoils.

“For investors in the mezzanine classes, there were sizable repayments of prior interest shortfalls. For example, the C class in that deal received interest exceeding 20 percent of the class’s face amount.”

This was unusual, said Barry, “considering the size” of the transaction. “You don’t have that many $1.5 million loans any more that have defaulted.”

However, Trepp still warned that nothing was certain, given recent legal action from one lender group questioning how the proceeds of the sale will be distributed.

2 thoughts on “ST/PCV lenders getting repaid: Report

  1. Speyer and BlackRock should have been made to repay the debt. The beleaguered and abused tenants of PCVST have really paid it off. We have lost so much here. Many lost their homes and we all lost the beauty of the grounds and the quality of life. There’s a special place in hell for the loathsome crooks who did this to us, and the sooner they all go and occupy that place the better! Benmoishe is already there!

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