The financial collapse of the Stuyvesant Town-Peter Cooper Village apartment complex in Manhattan might provide the first opportunity see how well new Treasury Department regulations adopted in September work. The rules allow borrowers to negotiate with the special servicers who represent the interests of investors in CMBS issues. The $3 billion senior mortgage on the project was packaged as five separate CMBS deals. The debt was transferred to a special servicer after the borrowers, Tishman Speyer Properties and BlackRock Realty Advisors, asked for relief on the terms of the debt.

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