Fla. pension fund loses 250 mil in n.y.

[Bob]

Florida Lost $250 Million on New York’s Stuyvesant Apartments - Bloomberg.com Sept. 1 (Bloomberg) -- Florida?s pension lost $250 million it invested in Stuyvesant Town and Peter Cooper Village, Manhattan?s largest rental-apartment complex, the fund?s trustees were told.

?We are carrying that investment at zero because the market softened dramatically,? Ash Williams, executive director of the State Board of Administration, which oversees $121.9 billion of pension and other assets, told a meeting in Tallahassee today.

The SBA bought in 2007 its share of a limited partnership run by Tishman Speyer Properties LP and Blackrock Inc., owners of the property, said Williams, who was hired in October 2008.

 

[SHELLY]

Florida Lost $250 Million on New York’s Stuyvesant Apartments - Bloomberg.com Sept. 1 (Bloomberg) -- Florida?s pension lost $250 million it invested in Stuyvesant Town and Peter Cooper Village, Manhattan?s largest rental-apartment complex, the fund?s trustees were told.

?We are carrying that investment at zero because the market softened dramatically,? Ash Williams, executive director of the State Board of Administration, which oversees $121.9 billion of pension and other assets, told a meeting in Tallahassee today.

The SBA bought in 2007 its share of a limited partnership run by Tishman Speyer Properties LP and Blackrock Inc., owners of the property, said Williams, who was hired in October 2008.

All 115,000 members of the FAR told them at the time "Now is a great time to buy."

 

[30ashopper]

Why anyone would put their retirement saving in the hands of a state government is beyond me. You get what you pay for I guess.

 

[beachmouse]

Historically, FRS is actually a quite good pension plan. At one point, they were one of roughly three state pension plans that was funded at more than 100% of obligations, and if you run the numbers, if you're thinking you're going to stay in the system for more than 10 years, you come out way ahead at retirement under FRS' defined benefit option compared to the defined contribution option if you assume historical average rate of return for the defined contribution plan.

 

[Bob]

Historically, FRS is actually a quite good pension plan. At one point, they were one of roughly three state pension plans that was funded at more than 100% of obligations, and if you run the numbers, if you're thinking you're going to stay in the system for more than 10 years, you come out way ahead at retirement under FRS' defined benefit option compared to the defined contribution option if you assume historical average rate of return for the defined contribution plan.

true but they flushed a giant stogie of enron stock a few years ago

 

[beachmouse]

No pension fund is perfect but FRS is infinitely better than CalPers and many of what remain among the private sector pension funds, even during those brief periods of time when CalPers has seemed capable of finding its own arse with either hand.

 

[Bob]

http://www.nytimes.com/2009/09/10/nyregion/10stuy.html?_r=1&hp Buyers of Huge Manhattan Complex Face Default Risk


By CHARLES V. BAGLI
Published: September 9, 2009

Three years ago, the sale of the 110 red brick apartment buildings at Stuyvesant Town and Peter Cooper Village in Manhattan amounted to the biggest American real estate deal of all time.

Now the buyers are running out of time and money. Jerry and Rob Speyer and their partner, BlackRock Realty, who together paid $5.4 billion for the quiet middle-class redoubt near the East River, have nearly exhausted an additional $890 million set aside for apartment renovations, landscaping and interest payments. Rents are down 25 percent from their peak.

Real estate analysts say that the partnership?s money will run out as soon as December and that the owners are at ?high risk? of default on $4.4 billion in loans. Two real estate executives who have been briefed on the finances insist that the owners can hold out, but only until February.

On Thursday, the partnership will go before the Court of Appeals in Albany to try to overturn a lower court decision that could force them to pay hundreds of millions of dollars in rent rebates to thousands of tenants.

 

[SHELLY]

http://www.nytimes.com/2009/09/10/nyregion/10stuy.html?_r=1&hp Buyers of Huge Manhattan Complex Face Default Risk


By CHARLES V. BAGLI
Published: September 9, 2009

Three years ago, the sale of the 110 red brick apartment buildings at Stuyvesant Town and Peter Cooper Village in Manhattan amounted to the biggest American real estate deal of all time.

Now the buyers are running out of time and money. Jerry and Rob Speyer and their partner, BlackRock Realty, who together paid $5.4 billion for the quiet middle-class redoubt near the East River, have nearly exhausted an additional $890 million set aside for apartment renovations, landscaping and interest payments. Rents are down 25 percent from their peak.

Real estate analysts say that the partnership’s money will run out as soon as December and that the owners are at “high risk” of default on $4.4 billion in loans. Two real estate executives who have been briefed on the finances insist that the owners can hold out, but only until February.

On Thursday, the partnership will go before the Court of Appeals in Albany to try to overturn a lower court decision that could force them to pay hundreds of millions of dollars in rent rebates to thousands of tenants.

Maybe Florida can do a deal with NY--instead of NY bussing the homeless to Florida, they can just have NY put them up in Florida's "investment" property in Manhatten...it's win-win-win.

.

 

[Bob]

Maybe Florida can do a deal with NY--instead of NY bussing the homeless to Florida, they can just have NY put them up in Florida's "investment" property in Manhatten...it's win-win-win.

.

how could they pay the rent? do you want adt to go bankrupt?

 

[SHELLY]

how could they pay the rent? do you want adt to go bankrupt?

..."bailout" or "stimulus" take your pick.

.