Stuyvesant Town/Peter Cooper Village Tenants win a judgment...

Two years after we noted that PCV/ST lost their appeal and the win was affirmed by the NY Court of Appeals on the J-51 rent control violation, the tenants have finally won their judgment of $215mm - almost a year's worth of revenues at the troubled property.

Deutsche Bank produced a summary of potential interest shortfalls making it apparent that they need to add a professional "formatter" to their team, but interesting nonetheless. In their worst-case scenario where all of the judgment is paid out of the CMBS trusts, shortfalls shake out as such:

Highest Class hit with a shortfall:
CWCI 2007-C2 G
MLCFC 2007-5 B
MLCFC 2007-6 D
WBCMT 2007-C30 F
WBCMT 2007-C31 G

Peter Cooper Village Stuyvesant Town Loses

They lost their appeal today

The ruling by the Court of Appeals may mean that the current owner, a partnership of Tishman Speyer Properties and BlackRock Realty, and the former owner, Metropolitan Life, may have to pay an estimated $200 million in rent overcharges and damages to tenants of about 4,000 apartments.

Recall that Bloomberg enacted new legislation in either early 2008 or early 2009 that allows for tenants to be awarded up to three times damages - not sure if that is included in the $200mm number or not! They're total revenue last year was $289mm.

How can you find out what other NYC landlords have used J-51? I bet a lot of the rent control flips did...

The decision could also affect landlords of as many as 80,000 apartments across the city who may also have improperly raised rents and deregulated apartments while receiving special tax breaks.

Click the table below to see it better - it lists some of the bigger rent control flips that didn't look like they would last another year (PCV/ST still had 1+ years of reserves at the time), but it is a little dated from an late 2008 BOA report. Their report had half a dozen pages of other ones as well...