Some craziness is afoot at Stuy-Town. The Times reports that Stuy Town overlord CW Capital Management is likely headed back to the auction block, and analysts say that this could be the first step in reselling the 11,200-unit apartment complex. CW Capital came to control the complex after former owner Tishman Speyer ran out of money after the housing market crashed. Tishman Speyer paid a whopping $5.4 billion for the complex at the height of the real estate boom in 2006, but ran into financial trouble and lost the 80-acre property to lenders in 2010.
The current financial situation is complicated, but CW Capital represents a series of trusts that hold a $3 billion "senior loan" or first mortgage. When Tishman purchased Stuy-Town in '06, it also created 11 "tranches of mezzanine debt" (the Times calls these a "secondary loan"), three of which are owned by PVC-M (Peter Cooper Village). Today, CW Capital begins the foreclosure process on these three chunks of debt. If it goes as planned, CW Capital would become the site's formal owner in June. CW Capital said in a statement that the "foreclosure process will have no impact on our residents or on property operations," but according to the Times, "Tenants and real estate analysts say that foreclosure would most likely begin the process of putting the complex up for sale, later this year or early in 2015. With the market for residential real estate in New York even hotter than it was in 2006, a sale is again likely to attract many buyers, including from abroad." Anyone else experience some serious déjà vu? Guess no one has learned anything from the last eight years.
· Stuyvesant Town Complex Appears Headed to Auction Block [NYT]
· All Stuy-Town coverage [Curbed]