Wednesday, October 1, 2008

Rose-Tinted Glasses Shattered

I hate to toot my horn, especially because what's allowing me to do that is the financial implosion of my country, but I just have to say that the real-estate market in my adopted hometown, New York City, is finally coming to the end of its bull(s$%t) stage, says the NYT.

When I was a real-estate reporter for an unmentionable paper in Manhattan, one of the most tragic things to happen (out of many) was Tishman-Speyer's takeover of Stuyvesant Town/Peter Cooper Village--another example of gentrification and a turning-away of providing affordable housing for the middle class (even if, when the gigantic East Side complexes originally opened, they wouldn't let African-Americans in). Well, I don't know how good this is for the tenants, but I am chuckling at Tishman's latest woes:

Commercial properties are not the only ones facing problems. On Friday, Standard & Poor’s dropped its rating on the bonds used in Tishman’s $5.4 billion purchase of the Stuyvesant Town and Peter Cooper Village apartment complexes in 2006, the biggest real estate deal in modern history. Standard & Poor’s said it cut the rating, in part, because of an estimated 10 percent decline in the properties’ value and the rapid depletion of reserve funds.

Who knows, maybe with this downturn New York will get interesting again?

Note: I'll try to avoid writing about real estate again, but you know, ain't too much happening down here today! (And by the way, where the hell has the Dude gone? Too wasted on white Russians to post?)

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