“It has become clear to us through this process that the only viable alternative to bankruptcy would be to transfer control and operation of the property, in an orderly manner, to the lenders and their representatives. We make this decision as we feel a battle over the property or a contested bankruptcy process is not in the long-term interest of the property, its residents, our partnership or the city.”

And thus ended what was at its consummation, the largest commercial real estate deal in the U.S., Tishman Speyer’s $5.4BN purchase of Peter Cooper Village and Stuyvesant Town. Tishman Speyer and BlackRock Inc. (BLK) also defaulted on $4.4BN of debt in the process from a veritable who’s who of institutional investors.