Foreclosure Proceedings Not Deterring Stuy Town's Newest Suitors
The New York Times reports: Although its 2006 sale exemplified the sum total of hubris during the commercial property boom years, Stuyvesant Town and Peter Cooper Village has seemingly maintained its allure for investors since owners Tishman Speyer and BlackRock Realty foreclosed on the property in January 2010.
The New York Times reports that several partnerships have been preparing to make an offer to the current bondholders for control of the property. Winthrop Realty Trust and Pershing Square Capital entered talks with bondholders on Monday, August 9, 2010, proposing to convert Stuy Town's rental apartments into an "affordable cooperative" under their plan for ownership. Other entities, such as Colony Capital, Westwood Capital, and high-net-worth investors have also informally showed interest in the property.
To explain the sudden investor interest in the massively indebted property, Real Capital Analytics' Ben Thypin stated, "Despite the turbulence surrounding this property in recent years...Stuyvesant Town remains an irreplaceable asset that many deep-pocketed players will be interested in.” With 110 buildings containing 11,226 units and 25,000 tenants, Stuy Town would be both a cash cow and a flagship asset to any entity that could maintain control.
Despite these attractive possibilities, any future owner would have to anticipate owning a property worth far less than the debt it currently backs and a tenant organization that is coherent and fatigued from the uncertain circumstances faced under the previous owners. “No entity can be successful without the cooperation and support of the tenants,” stated the Times.
View the full article on The New York Times: Foreclosure Proceedings Not Deterring Stuy Town's Newest Suitors
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Posted by: Nina Turner