California Pensions Lose $ Gentrifying NY Rental Housing

By David B. Caruso

It was the most expensive real estate deal in U.S. history. Now it’s poised to become one of the biggest flops.

At the height of the real estate bubble in 2006, an investment group led by New York City real estate firm Tishman Speyer Properties and BlackRock Realty Advisors paid $5.4 billion for a pair of gigantic Manhattan apartment complexes known as Stuyvesant Town and Peter Cooper Village.

The price seemed outrageous to many, but the company believed it had a winning strategy: It would aggressively convert thousands of rent-regulated apartments occupied by middle-class families into luxury units that would fetch top dollar.

Continue reading Record NYC Real Estate Deal Now On The Rocks