Blackstone, Ivanhoe Cambridge take ownership of Stuy Town

Jon Gray smile

Jon Gray, Blackstone global head of real estate (Photo by Sabina Mollot)

 

By Sabina Mollot

On Friday, Blackstone and Ivanhoé Cambridge announced that they closed on the $5.3 billion deal to purchase Stuyvesant Town and Peter Cooper Village. This means that the companies have assumed ownership and CWCapital, the special servicer since 2010, no longer has any ownership interests in the property.

“We are proud to have entered into long-term partnership with the PCVST community and the City of New York,” said Jon Gray, Global Head of Real Estate for Blackstone, in an official statement. “We look forward to working together with them to preserve what makes this community so special.”

Daniel Fournier, chairman and CEO of Ivanhoé Cambridge said, “We are honored to share with Blackstone the responsibility of the future of PCVST. This investment is a win-win for the community of 30,000 residents, for our investors and for New York.”

The deal, touted as “the mother of all preservation deals,” by Mayor Bill de Blasio, will preserve affordability at 5,000 of the complex’s apartments for the next 20 years. There are also some protections for the 1,400 “Roberts” tenants while for market rate residents, the deal maintains the status quo.

Council Member Dan Garodnick also commented on the closing to welcome the new owner.

“For too long, the residents of Stuyvesant Town and Peter Cooper have faced an uncertain future. That ends today,” he said. “We welcome Blackstone and Ivanhoe Cambridge, and look forward to working with them to deliver a stronger and more stable community. After nine years of fighting back against efforts to undermine tenants’ rights, we now find ourselves in a much better position. With the preservation of 5,000 units for middle class New Yorkers, this deal is a very positive outcome for both current and future tenants, and for the City.”

Since announcing the purchase in October, Blackstone has been issuing surveys and conducting focus groups to get tenant feedback on issues of importance to the community. Blackstone spokesperson Paula Chirhart said the focus groups have just concluded this week though the company still welcomes any feedback and is keeping its hotline for tenants open.

With regards to matters like management of the property and other issues, Blackstone plans to make additional announcements early in 2016.

Eastdil Secured’s Doug Harmon acted as the exclusive advisor in the transaction.

Although the sale didn’t come with an option to convert to condos, as the ST-PCV Tenants Association had pushed for, the Tenants Association still cheered news of the sale in October and following the closing.

“Today’s closing and transfer of ownership of our community to Blackstone ends a very turbulent decade,” said Susan Steinberg, president of the Tenants Association. “The outcome could have been disastrous to our residents given the predatory nature of other interested developers. Blackstone has embraced affordability and the principles that the Tenants Association developed years ago for ownership of Stuyvesant Town and Peter Cooper Village, and their outreach to tenants so far has been laudable.”

She also thanked the TA’s counsel, Paul Weiss Wharton & Rifkin and Moelis & Company, “who helped us chart troubled waters and bring us to this point,” as well as local elected officials, in particular Garodnick.

“None of our successes here would have been possible without his tireless dedication,” Steinberg said.

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6 thoughts on “Blackstone, Ivanhoe Cambridge take ownership of Stuy Town

  1. Great news. Thanks Dan for all dedication to this issue. I am hoping that our new landlord will begin to successfully address the quality of life issues such as apartment overcrowding and noise control problems plaguing our community.

  2. gazalnyc,

    The TA and Danny Boy didn’t even know about this until a day or two before the press release. They did not have a seat and the negotiating table.

    The only thing they worked tirelessly on was the Brookfield condo plan, which would have displaced all but the most wealhiest tenants who could afford to buy their apartments at near-market rates.

  3. OMG! There’s a delusional masochist born every minute. Dan enriched himself and his sleazy law firm and the TA board is delusional about him. Neither he nor the TA Board ever did anything for the tenants that wasn’t deleterious to tenants and beneficial to themselves.

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