The new owners of Stuyvesant Town and Peter Cooper Village are in danger of defaulting on their massive $4.4 billion loan.

The New York Times reported today that the owners are running out of money and time to make debt payments.

Tishman Speyer and partner, BlackRock Realty bought the property three years ago from Met Life for a record $5.4 billion. It was the largest American real estate transaction, ever.

But the complex has lost half its value since then and revenues are tight.

"We knew that they were wrong all along," said Councilman Daniel Garodnick, who lives in the 110-building complex. "And now they are seeing the effects in that they cannot continue to meet their obligations, and it looks like that will be the case to the end of the year."

When Tishman Speyer bought the properties, tenant advocates warned the company would try to evict long-time rent-stabilized tenants to bring in higher rents to help cover their costs. More than half of the 11,000 apartments at the two complexes are rent regulated.

According to the New York Times, income from rent is said to be down 25 percent, covering less than half of the debt payments.

Residents say they feel bankruptcy may be imminent and that they are not surprised.

"They made a bad investment. I mean, they paid too much, and you know, let the market do its job," said a resident. "Let the price come down and somebody else will buy it."

"Already the maintenance is declining. The rats you see more quickly now. I just killed a roach on the top of my computer this morning," said another. "I've never saw a roach in all the years I lived here in my bedroom, over 30 years."

Tishman Speyer's co-chief executive officer Rob Speyer acknowledges there is a money problem at the complex, saying the financing is going to need restructuring. But the company would not comment on the exact details.

Tishman Speyer has other financial woes. It's appealing an order by the state's Appellate Division to pay out a couple hundred million dollars in rebates to renters. That's after the court ruled the landlord and the previous one unfairly collected city tax breaks for apartment renovations, while deregulating those apartments at the same time.

"We remain firmly convinced that Justice Lowe's initial decision to dismiss the lawsuit was the correct one and appreciate the opportunity to present our case to the Court of Appeals," said Tishman Speyer in a statement.

Speyer also says renegotiating the terms of their loans will begin after the Court of Appeals judgment, which could take weeks or months.