This one’s been in trouble for a while, and now WSJ is reporting that the epic NYC apartment complex Stuyvesant Town is just months away from implosion.
See what it’s like to live there >
The 56-building, 11,000 unit complex was acquired at the peak of the bubble for $5.4 billion by Tishman Speyer and BlackRock, with investors ranging from CALPERS (naturally) to the Church of England (not as obvious).
Here’s the deal:
- The property is now thought to be worth just $2.1 billion.
- The buyers originally projected income would triple to $336 million in 2011, but right now it’s only at $139 million.
- They’ve got just $33 million cash on hand from its interest reserves to cover its debt, and a burn rate of $16 million.
So basically: they’re screwed.
Meanwhile, this sad state of affairs explains why StuyTown is so eager to advertise on subways and magazines, in a desperate bid to gain tenants? Perhaps you want to help them out and live in converted public housing (which is what it is).
Yes, it's not one of those grand entrances like you'd see on the park. In fact it looks a lot like what you'd think of as Section 8 housing. But it's not! Really!
See, it's totally NOT your typical public housing. It's got happy people sitting around a fountain!
Ok, so the exterior may look like public housing, but when has public housing ever had units to trendy and stylish? Now don't you want to live here?
Sure that kitchen looks really, really tiny. But it's got room for a nice stove and a pumpkin-coloured food processor and really that's all you need.
Just in case you weren't clear about that, here's another angle confirming that there's a fountain.
Wait, we just wanted to be totally clear on this: Stuyvesant Town as a fountain. Got that? Cause it's really important.
Another perk: If you rent there (and remember, your helping to stave off one of the biggest commercial real estate mistakes if you do) you don't have to join a separate gym.