The Stuy Town mortgage has been transferred to a special servicer, according to the rating agency Fitch (by way of Eliot Brown) this morning. A special servicer appears to be the first step in the sprawling complex’s inevitable default. “The owners of the giant 11,200-unit Manhattan apartment complex, a partnership led by Tishman Speyer and BlackRock, had just $24 million left last month in a reserve fund to pay off debt, and default was expected in a matter of weeks,” Brown writes.
And now it appears to be here; transfer to a special servicer usually takes the power to restructure out of the owners’ hands since, well, they’re not paying the bill anyway.
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