Stuyvesant Town buildings
By Sabina Mollot
Over five years after taking control of the property, CWCapital is preparing Stuyvesant Town/Peter Cooper Village for a sale, Bloomberg news reported on Saturday.
The article went on to name Blackstone Group LP as a likely bidder, with others possibly in the mix, though not Brookfield Asset Management. That company, which had announced a partnership with the ST-PCV Tenants Association four years ago with a plan for a non-eviction condominium conversion, is no longer involved, a rep for Brookfield said.
Meanwhile, it’s possible a future deal could secure $5-$6 billion. The latter figure would be more than the historic $5.4 billion paid by Tishman Speyer and partner BlackRock in 2006, with the article citing a strong residential market in Manhattan.
Additionally, the report said, “Blackstone’s real estate chief, Jon Gray, said this month that he was bullish on Manhattan rentals because it’s too costly for many residents to buy.”
Peter Rose, a spokesperson for Blackstone, did not immediately return a call requesting comment. Brian Moriarty, a spokesperson for CWCapital, did not respond to a request for comment.
UPDATE: Joe DePlasco, a spokesperson for CW, issued a statement on Monday, saying, “We are pleased that we have finalized in principle the settlement of the outstanding litigation. CWCapital retained Doug Harmon at Eastdil Secured to advise throughout the process.”
The statement from DePlasco didn’t elaborate on the terms of the settlement.
However, CW’s effort to sell has been hampered by a lawsuit filed by junior lenders represented by a company called Centerbridge Partners. The lenders had hoped for a chance to buy a key piece of the junior or mezzanine debt and accused CW of violating an intercreditor agreement when the servicer took title of the property through a deed last year instead of holding a foreclosure sale.
A spokesperson for EastDil didn’t immediately return a call requesting comment.
Susan Steinberg, the president of the ST-PCV Tenants Association, was out of town on Monday, and not available to be interviewed. Council Member Dan Garodnick, a Peter Cooper Village resident, was also unavailable for an interview on Monday morning.
However, he’d previously told Bloomberg, “The tenants are going to insist that the owners work directly with them and with the city to develop a responsible plan to protect the long-term affordability of the place.”
Garodnick has previously met with Mayor Bill de Blasio on a plan to maintain affordability in ST/PCV, that is, in the roughly 6,000 units that are still affordable. On Monday, Wiley Norvell, a spokesperson for the mayor, said the mayor still wanted to preserve affordability.
“Protecting this community’s legacy as a home for New York City’s middle class is a top priority for Mayor de Blasio,” Norvell said. “We will press any owner to preserve affordable housing.”
Andrew Willis, a spokesperson for Brookfield, confirmed that the company was “no longer in the process” of bidding, although he said he didn’t know the reason for the decision.
Johann Hamilton, a spokesperson for the Real Estate Board of New York, whose chair is Tishman Speyer president and CEO Rob Speyer, declined to comment.
This story will be updated.