Mum's the Word on Who Sought Stuy Town TALF Funds

The Tishman Speyer and BlackRock Realty joint venture that acquired the now-embattled Stuyvesant Town/Peter Cooper Village property in New York for $5.6 billion in 2006 didn’t apply for $1.5 billion in TALF (Term Asset-Backed Securities Loan Facility) support for the property from the New York Federal Reserve, but somebody did. Responding to a Christmas Day report in the New York Post that the Stuy Town owners applied for—and were denied—the $1.5 billion in TALF funds from the Fed, Tishman Speyer released a statement this week refuting any involvement in the application for a federal bailout.

No matter what entity applied for TALF support for Stuy Town, the rejection of the application should come as little surprise given the Fed’s qualifying conditions for approval. “TALF is a replacement through the New York Fed for the reverse repurchase agreement market and is intended for AAA securities,” says Brian Olasov, a TALF expert and a Managing Director of law firm McKenna Long & Aldridge. “The Peter Cooper/Stuyvesant Town CMBS are not AAA securities anymore. They originally were, but they have not been for sometime, and regardless, neither the TARP nor TALF programs have ended up being a great panacea for distressed multifamily assets.”

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