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Stellar and its partner Rockpoint are on the verge of defaulting on their $225 million mortgage for Riverton Apartments in Harlem. See articles in the Wall Street Journal, Reuters,Crain's New York and WNYC.
The likely default was predicted by the Partnership to Preserve Affordable Housing in its April 28, 2008 memo (click on "read more" below to see it), written by Thomas Waters, housing analyst for the Community Service Society. When equity funds invest substantially more than the rents will supply, the investment can only be repaid by evicting the rent-regulated tenants. Failure to do that means defaults, lack of maintenance, and disaster.
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