Investment Collapse Betting Pool: Costs Cut at Stuy Town
Updated 9:58 AM EST, Wed, Jul 29, 2009
The value of East Side rental megacomplex Stuyvesant Town/Peter Cooper Village has reportedly dropped 10% since Tishman Speyer and partners bought it for $5.6 billion in 2006. That's not the only sour financial news. Chasing rent-stabilized tenants is eating up some of the company's profits, and converting units to market-rate rentals has not been smooth sailing. It has all led to this: hardcore cost-cutting! The Post reports that for the first time in the 11,000-unit complex's history, all residents will be paying for their own utilities. Tishman Speyer is currently installing a new metered system, unbeknownst to tenants. This follows some other penny-pinching moves recently put in place. The call center, which fields maintenance and service requests from tenants, has been outsourced to India. And members of the Tenants Association message board have been complaining about a reduction in security staff for months. Stuy Towners who are considering banding together to discuss your options, please remember: Big Speyer is watching you.
· Tishman Turns Up Heat, Electricity on Renters [NYP]
· Stuyvesant Town coverage [Curbed]
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First Published: Oct 23, 2008 2:25 PM EST
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