Bank of America has asked for court approval to foreclose on the 80-acre Stuyvesant Town property.
With the other senior creditors, who combined have some $3 billion of loans outstanding, Bank of America wants to have the property sold to recover the funds now that the owners of Stuy Town–Tishman Speyer and BlackRock–have stopped paying back their loans.
Bank of America and U.S. Bank National Association filed the complaint yesterday in federal court in New York against an affiliate of property owner Tishman Speyer Properties LP.
“The borrowers have failed to make any payments of the outstanding principal,” Bloomberg reports the trustees said in the complaint filed in federal court.
The foreclosure process is expected to take anywhere from a year to a year and half.