It went like this: Tishman Speyer, along with junior partners, bought Stuyvesant Town and Cooper Village in 2006 for a record $5.4 billion, and set about turning as many of the complexes’ rent-regulated apartments market rate as possible. There’s been trouble along the way, a lot of controversy, and speculation that the money Tishman paid wasn’t worth it for the return.
Now, reports Jason Turcotte of Real Estate Weekly, Tishman should soon be able to put the speculation to rest. Simply put, soon the landlord will have had the opportunity to renew–or not–virtually every lease.
The picture of income, which Tishman is said to be close to arriving at because it has finished reviewing almost all of the property’s rolling leases, will likely allow the company to determine whether its record purchase of the 11,000-unit complex will be a financial success.
Nearly two years have passed since Tishman Speyer purchased the twin complex for $5.4 billion, the most ever paid for a single residential real estate asset and whose financial feasibility appeared to be based upon the expectation that a significant portion of the property’s rent regulated tenants could be replaced with those paying market rate.
But in about two months … leases for virtually all of the complex’s tenants will have come up for renewal during Tishman’s tenure as owner because the maximum lease period for regulated apartments is two years.