The important thing to remember about the potential default of Stuy Town is that three years ago it was a completely paid for, tidily, but not extraordinarily profitable enterprise for previous owner MetLife. Debt-free, positive cash-flow, in the best rental market in the US. Now it’s US$5BN in the hole, and not generating enough cash flow to make the interest servicing. There’s your economic meltdown in a nutshell.
3 years ago
January 22, 2009
