Further jeopardizing a big CalPERS investment, the partnership in
control of a New York apartment complex missed a debt payment Friday.
The
partnership led by Tishman Speyer Properties and BlackRock Inc.
announced it would miss a $16 million bond payment, according to
Bloomberg News. That puts the complex a big step closer to default – a
development that real estate analysts in New York have been predicting
for months.
Default would likely wipe out the $500 million
invested by the California Public Employees' Retirement System, one of
several big investors in the project. The California State Teachers'
Retirement System already has written off its $100 million investment.
The investment, made in 2006, was controversial because the partnership
was accused of trying to drive out long-standing tenants in order to
raise rents. Most of the units were subject to the city's rent-control
laws. New York's highest state court ruled last fall that rents were
raised illegally in many cases.
The
Wall Street Journal, quoting anonymous sources, reported last fall that
CalPERS is considering firing BlackRock as one of its investment
advisers. CalPERS would only say it's reviewing its relationship with
BlackRock.
FAIR USE NOTICE. This document may contain copyrighted material the use of which may not have been specifically authorized by the copyright owner. Tenants Together is making this article available on our website in an effort to advance the understanding of tenant rights issues in California. We believe that this constitutes a 'fair use' of any such copyrighted material as provided for in section 107 of the U.S. Copyright Law. If you wish to use this copyrighted material for purposes of your own that go beyond 'fair use,' you must obtain permission from the copyright owner.