The saga of Stuyvesant Town feels like it will never really end, but sometimes it takes tentative steps forward. The latest: former Stuy Town owner MetLife and the complex's tenants have finally reached an agreement to settle the dispute over deregulated rents. The agreement needs court approval before it can be implemented. But it could close the loop on a lawsuit that began in 2005, when tenants sued with the argument that MetLife and the Stuy Town investors led by Tishman Speyer had illegally deregulated units while receiving J-51 tax breaks. The court ruled in tenants' favor in late 2009.
Sources tell Crain's MetLife won't be paying anywhere near the $200 million lawyers said overcharged tenants were owed. We can't say we're surprised. Crain's also hears tenants are close to a deal with CW Capital, and that settlement would include new rules for rents on the illegally deregulated units. Anyone know more about that settlement? Intel to firstname.lastname@example.org or the comments, if you please. In the meantime, let's prepare ourselves for the next Stuy Town battle, over cheap for-sale apartments.
· Huge deal struck at Stuy Town [Crain's]