A few months after the $3-billion first mortgage on the Peter Cooper Village/ Stuyvesant Town apartment complex in New York City first went into special servicing and then into foreclosure proceedings, another high watermark deal of the current market has started down a similar route. The Blackstone Group in late May transferred to a special servicer the $4.9 billion of CMBS debt remaining from its $39.2-billion purchase of Equity Office Properties Trust. It’s reportedly now the largest loan in special servicing.

In reporting the transfer, Fitch Ratings cited “imminent default” as the reason. Peter Rose, a spokesman for Blackstone, told Bloomberg that his company had begun talks with the lender, Bank of America, on extending the debt. “Special servicing is simply a routine administrative step in order to start these discussions.” Rose said in May. Calls by Distressed Assets Investor for additional comment were not returned by deadline.

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?


© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.


Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2024 ALM Global, LLC. All Rights Reserved.