Stuy Town Fears Lowered Quality Of Life As Landlords Miss Mortgage Payment
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Tenants at Stuyvesant town and Peter Cooper Village, the largest middle class housing complexes in Manhattan, were concerned Friday about their area's upkeep, now that their landlords cannot make mortgage payments. Borough reporter Rebecca Spitz filed the following report.When developers paid a record sum to buy Stuyvesant town and Peter Cooper Village in 2006, the plan was to convert the rent-stabilized Manhattan apartments to market rate in short order to pay off their loans.
But that plan was found to be illegal, and on Friday, short of funds, the owners missed a $16 million loan payment.
"I think everybody pretty much figured they were going to," said one tenant.
"I'm not surprised at all, they're lousy landlords," said another.
The group, led by Tishman Speyer and BlackRock Realty, paid $5.4 billion for the huge middle-class development, but with the economic downturn the property is worth far less. Now the group has been trying to restructure $3 billion in debt to hold on to the real estate.
City Councilman Dan Garodnick lives in Peter Cooper Village, and his district also covers the area.
"We're not going to let the tenants be collateral damage of a real estate deal gone bad," said Garodnick. "This used to be the symbol of peace and stability in middle-class housing. Now there are endless numbers of questions."
The sprawling complex's 20,000-plus tenants may not face immediate eviction, but they do fear that their quality of life will suffer.
"We've been aware for some time that Tishman Speyer has cut back on maintenance staff and the security staff," said a resident.
No owners were available for an interview Friday, but they said in a statement, "[This] announcement has no immediate impact on tenant services or the day-to-day operations of the community. Tishman Speyer and BlackRock remain committed to serving the community’s residents to the best of their ability and in a first-class manner."
Still skeptical, Garodnick said he will insist the city keep the interests of the complex front and center.
"We now have an opportunity to bring Stuyvesant town back to its roots, and find a restructuring plan that works for tenants. One that respects the original principles on which it was built, that's what we're going to be looking to achieve here," said the councilman.
Those wishes are shared by the thousands of New Yorkers who call the complexes home.