Bankrupt on Selling
January 25, 2010 3:54 PM Subscribe
posted by freshundz (57 comments total)
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Tishman Speyer Properties is defaulting
on its $5.4 billion, high profile acquisition of the enormous Stuyvesant Town apartment complex in Manhattan, resulting in million in losses for investors and possibly "signaling the beginning of what is expected to be a wave of commercial-property failures".
The failure is the result of an aggressive business model designed to "push moderate income tenants out and replace them with well-heeled renters willing to pay rents at a much higher price" a practice referred to as Predatory Equity.
The same approach has been attempted elsewhere
in the city such as the Riverton Apartment complex in Harlem where long term profits were expected "if they can achieve that high rate of turnover – displacing half of Riverton’s low- to moderate-income tenants in a five-year period"