Find the latest episode of "The Uncertain Hour" here. Listen

Stuyvesant: A real estate bellwether?

Amy Scott Sep 30, 2010
HTML EMBED:
COPY

Stuyvesant: A real estate bellwether?

Amy Scott Sep 30, 2010
HTML EMBED:
COPY

TEXT OF STORY

BILL RADKE: The future of a massive New York City apartment complex is a little clearer this week,
after a state appeals court ruled that a foreclosure sale will go forward. The $5.5 billion sale of this development four years ago
kind of marked the peak of the real estate bubble. Now the property is said to be worth less than half that.

Marketplace’s Amy Scott reports.


AMY SCOTT: Stuyvesant Town and Peter Cooper Village occupy 80 acres on the east side of Manhattan. Some 2,500 people live there.

AL DOYLE: And it’s been a middle class housing oasis, really, since 1947.

That’s Al Doyle, president of the tenants association. Earlier this year the owners of that oasis defaulted on billions of dollars in loans. Two groups of lenders have been battling for control. This week’s court ruling clears the way for one of those groups to sell the complex.

Economist Sam Chandan with Real Capital Analytics says the sale could be a bellwether for the recovering commercial real estate market.

SAM CHANDAN: Strong valuation, I think, could help to bolster what is already a positive underlying trend for the apartment sector in the United States.

Tenants are hoping for a deal that allows some of them to buy their apartments at affordable prices and others to stay on as renters.

I’m Amy Scott for Marketplace.

Marketplace is on a mission.

We believe Main Street matters as much as Wall Street, economic news is made relevant and real through human stories, and a touch of humor helps enliven topics you might typically find…well, dull.

Through the signature style that only Marketplace can deliver, we’re on a mission to raise the economic intelligence of the country—but we don’t do it alone. We count on listeners and readers like you to keep this public service free and accessible to all. Will you become a partner in our mission today?

Your donation is critical to the future of public service journalism. Support our work today – for as little as $5 – and help us keep making people smarter.