NEW YORK, NY-- Fitch Ratings has reviewed updated financials, including a 2009 budget and the year-end 2008 rent roll, for the Stuyvesant Town/Peter Cooper Village loan. (centered photo below)
Although the property's performance remains consistent, the cash flow generated from the property continues to require significant reserves to cover debt service obligations.
As of Jan. 15, 2009, the General Reserve balance has been completely depleted and the Debt Service Reserve balance has decreased to $127.7 million from $400 million at issuance.
(Tishman Speyer principals are Jerry Speyer (top left photo), chairman and Co- CEO; Rob Speyer (bottom right photo), president and Co-CEO; and Robert V. Tishman, founding chairman, middle right photo)
Property cash flow is notexpected improve from 2008 based on the borrowers restated budget for 2009.
As a result, according to Fitch's calculations and the 2009 budget, the borrower has approximately six months of reserves remaining to cover the trust portion of the total debt on the property.
Should the loan default, Fitch expects the servicer to advance debt service on the trust portion.
The securitized balance of the Stuyvesant Town/Peter Cooper Village Loanconsists of fi
ve pari passu pieces of a $3 billion A-Note.
ve pari passu pieces of a $3 billion A-Note.There is an additional $1.5 billion of mezzanine debt outside the trust.
Fitch rates four of the five notes, ranging from $202.3 million to $1.5 billion.
Fitch reviewed the transactions on October 29, 2008 and lowered the shadow rating of the Stuyvesant Town/Peter Cooper Village loan to below investment grade as a result of slower than anticipated conversion of rent stabilized units to market.
Peter Cooper Village and Stuyvesant Town is a multifamily property comprising 56 multi-story buildings with a total of 11,227 residential apartments in Manhattan, NY.
In addition to the residential component, the complex contains approximately 100,000 square feet of retail space,20,000 sf of professional office space, and six parking garages with 2,260 licensed spaces.
The borrower, Tishman Speyer Properties, LP, and BlackrockRealty acquired the property with the intent to convert rent-stabilized units to market rents as tenants vacated the property, resulting in increased rental revenue.
Fitch continues to closely monitor property leasing efforts and the balanceof reserves.
Contacts:
Sue Ann Butera, +1-212-908-0713 or Adam Fox, +1-212-908-0869, NewYork.
Media Relations: 
Sandro Scenga, Senior Director, Corporate Communications, Fitch Ratings, +1-212-908-0278
Sandro Scenga, Senior Director, Corporate Communications, Fitch Ratings, +1-212-908-0278
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