Stuy Town, Which Is On Verge Of Default, Costs Florida's Pension Fund Entire $250 Million Investment
Stuy Town, which as Zero Hedge wrote about several days ago is in dire straits and a few months away from default, has claimed its first casualty in the face of the Florida pension fund, aka State Board Administration which has disclosed a full loss on its $250 million investment. Next question: is Blackrock still carrying Stuy Town at 100 cents on the dollar for its own LP appeasement purposes (PEs heart FASB looseness)? This piece of information will likely get as much coverage on GE's propaganda central subsidiary as Chrysler missing August sales estimates by almost 20%.
Florida’s pension lost $250 million
it invested in Stuyvesant Town and Peter Cooper Village,
Manhattan’s largest rental-apartment complex, the fund’s
trustees were told.
“We are carrying that investment at zero because the
market softened dramatically,” Ash Williams, executive director
of the State Board of Administration, which oversees $121.9
billion of pension and other assets, told a meeting in
“Rents are not going up like they normally would,
landlords are making concessions like free rent and people have
not moved out at the rate anticipated,” said Williams, who came
to the SBA after nine years as a managing director at Fir Tree
Partners, a New York hedge fund.
Manhattan apartment rents fell as much as 10 percent in
August from a year earlier, the Real Estate Group of New York
said on Aug. 25. Vacancies are growing and tenants aren’t moving
as the city’s unemployment rate climbed to a 12-year high of 9.6
percent in July.
Hm, this oddly does not jive with what one has been hearing on CNBC about the next debt funded American Golden Age; so the hype about recent 6.5% cap rate transactions was just an outlier? That is indeed unfortunate for CRE investors who eagerly anticipate rents and occupancy rates to promptly get back to their 2007 peaks.