Stuy Town's overlord is now officially Stuy Town's ownerfor now. Earlier this week CWCapital Management, which has controlled the 80-acre complex on behalf of lenders since 2010, went to court to formally take ownership of the site, according to the Times. Last month, it was reported that CWCapital planned to foreclose on some of the site's debt in order to re-sell the middle-income complex, but CWC recently found out that a "mysterious investor" wants to seize the property. Lawyers for the unnamed company told CWC that it would be "exercising its right to buy a key loan on the property," which CWC saw as the first step in this company' trying to take control of Stuy Town and force it into bankruptcy. Since CWCapital thwarted those plans, they may be hit with a lawsuit.
Stuy Town has been in turmoil since Tishman Speyer bought it for a record $5.4 billion in 2006, then defaulted on its loans four years later and CWCapital took over on behalf of trusts. A sale of the complex is still a possibility. CWCapital's parent company, Fortress Investment Group was said to be preparing a $4.7 billion, and the Times says that Blackstone, Related Companies, Extell, and the LeFrak family have all expressed interest in the site.
Throughout all of the troubles, the tenants of Stuyvesant Town-Peter Cooper Village have maintained a desire to take control of the complex themselves. Just yesterday, the Tenants Association sent out a statement that said, "We and our partner, Brookfield Asset Management, are as committed to acquiring the property as we have been for the past three years. However, we cannot rest easy-our future remains at stake. A tenant-led purchase is the only defense against a predatory equity takeover. We could be sold to the highest bidder or even to CW's parent company, Fortress Investment Group." They are organizing a June 13 rally to "Stop Predators from Stealing Our Community (Again!)."
New York State Senator Brad Hoylman issued a statement against the sale, urging government intervention to avoid the loss of more affordable housing. He also pointed out that "the 25,000 resident population of Stuy Town-Peter Cooper is larger than many cities in New York. Imagine the response if, say, Kingston or Glens Falls or were being sold off to real estate investors!"
· Stuyvesant Town Lenders Move to Prevent Investor From Seizing the Property [NYT]
· CWCapital takes title to Stuy Town, cancels auction [Crain's]
· All Stuy Town coverage [Curbed]
Photo via Zander Price/Curbed Flickr pool