I was not aware that this was happening…
For four years, tenants and creditors have haggled over the fate of Stuyvesant Town-Peter Cooper Village. It could all be over next month.
CWCapital Asset Management LLC, the loan servicer that has been in charge of Manhattan’s largest apartment complex since its owners defaulted on a $3 billion mortgage in 2010, is holding a foreclosure sale on June 13 for $300 million of junior loans. While CWCapital holds that debt and is poised to officially take over the property at the auction, other bidders may come with their own plans to pay off bondholders.
Annual income at the 80-acre (32-hectare) community has climbed by $54 million since Tishman Speyer Properties LP and BlackRock Inc. walked away from their investment after plans to raise rents crumbled, according to Amherst Securities Group LP. With revenue up and New York real estate luring global capital, the property that became a poster child for boom-era excess is attracting suitors including Fortress Investment Group LLC.
“Stuy Town” became the poster child transaction representing the excesses of the real estate bubble when it was acquired by Tishman Speyer in 2006 for $5.4 billion. Â Tishman had planned on converting as many of the rent stabilized units to market rate units in a very short period of time. Â Their assumptions were unreasonable, their tactics questionable and it would ultimately lose a court case that disallowed it from deregulating units. Â In the face of unrelenting opposition and an economic and capital markets environment that turned against it, Tishman lost the property in 2010.
Stay tuned…
Isn’t Stuy Town a bit weird because it was a real estate complex developed by MetLife for their employees originally and became something else? It does not seem like a traditional real estate investment in many ways.Report
It wasn’t developed for MetLife employees, but it was developed by MetLife.
The only reason I know about the existence of Stuy Town is because it was the site of such a big, pre-Civil Rights Movement battle over discrimination in housing.Report
Yes.
If I recall, it was initially developed for returning soldiers and their families.
While it’s a traditional real estate asset class, the size of the deal and the attention from the various interest groups makes it anything but traditional.Report
Nowadays, it is where out-of-towners live.Report